N. Illinois Where to buy?

Question

Hello everyone,

Seeking advice on what is the best area in N Illinois.

I live in Lake Zurich Illinois and I'm looking to purchase my first investment/brrrr strategy close by.   However in my relatively  short  research (last few months) it seems properties that I could afford near me are overpriced, overtaxed or has less than desirable tenants.   The numbers just don't work out.  Because of this I started to look just outside of my area such as Rockford /Beloit area.

I would consider investing closer if I can find something similar or better.   This way I could  at least have a chance to see the brrr process or get my hands dirty.  I work full time so it would be difficult to brrrr with it being an hour and half drive.

Any suggestions would be appreciated.  I'm still interested in the Rockford/Beloit or anywhere else (even turnkey) if it doesn't work out.

Thanks so much.

Goals:  Brrrr process/ Long term hold/rinse repeat     Short term:   Have an investment by June of this year.

Criteria:

1) 50k-80k SFR property

2) 10k-20k light rehab  (most $ is coming from my HELOC so don't want to over leverage)

3) $950 to $1200 rent (trying to avoid D tenants/sect 8 on first investment)

4) Cashflows $200 or more with at least COC ROI of 10%

Tom B

Lake Zurich Il

Tom B. · Answer

Thanks Michael.   That last part about gathering notes-I think you were referring to wholesaling correct?  Sorry if I was confused

Michael Lewis Lee · Answer

Hello Tom!  I would look within an hour drive unless you end up with an experienced Turnkey Company.  I would recommend you should be looking in a growing economy close to a big employer in a big to medium sized city.  Have a good idea when considering the future.  Talk to locals to get a firm grasp on the location and that type of property is in a good demand. Try to get Owner Financing and/or be creative.  Get 1 or 2 notes that will make them get needed cash downpayment and show them on paper what they would make and that they may end up closer to the listing price.  Good luck to you!