Naperville, IL · Member since 2016 · 49 posts · 11 votes
Looking to start out with buying a second property. For those that know the Chicago area. Is there something to notate such as buying / not buying in general for rental income? I would think the area doesn’t matter as long as you get rental income which results I to positive cash flow - yes? Help me out here. I’m specifically talking about west and far west / sw burbs
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Account Closed you can definitely still find properties that are cash flow positive if you look in the right areas. A lot of my clients end up in Berwyn, Cicero or Forest Park depending on their risk tolerance/preference. I have also sold properties in Broadview, Hillside and Melrose park that perform well. What deal size are you hoping to find? 2-4 units? 5+?
Real Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
6y
Hi @Account Closed. How far southwest are you talking? Some suburbs are great for flips, some for rentals. Everyone has their own ROI, for example mine is 20% cash on cash return. But some are OK with 10%. Then you have the 1% rule, however you can still find a good property that doesn't meet that criteria.
Real Estate Agent · Forest Park, IL · Member since 2014 · 255 posts · 141 votes
6y
@Account Closed - The two major schools of thought are investing for cash flow or appreciation. Often times, there is a an overlap. Multifamily property (more units the better) tends to give greater cash flow in most any area. On the scale, I always lean in towards the cash flow side as I feel it's more conservative. As long as I'm not projecting a downturn in the area (ex: major employer struggling, relocating, or closing in a smaller community / long term trend of population reduction without multifamily->single family housing conversions / extremely high and growing tax to rent ratio) I am typically happy to invest with the right returns.
If looking on the MLS, your agent should be able to export current past listings and rents from the whole area to be able to sift through the data easier. Agents can typically provide housing stats/trend reports by city. Also check out https://www.city-data.com/ demographics for free.