Investing in Peoria, Bloomington, Decatur in IL

Real Estate Agent · UT · Member since 2023 · 27 posts · 22 votes

I am looking to invest in Peoria, Bloomington, or Decatur IL. how has been your experience with investing in these areas? can you achieve the BRRRR method and follow the 1% rule?

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Sean WagnerBusiness Member

Real Estate Broker · Chicago · Member since 2021 · 20 posts · 14 votes

1% rule is achievable in all of the above. Of all that you listed, I like Bloomington the best. You have Illinois State, Rivian, Country Financial, and State Farm. Plenty of renters and although home to a state school the town does not feel seasonal due to the other major employers.

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Sean WagnerBusiness Member
Real Estate Broker · Chicago · Member since 2021 · 20 posts · 14 votes
1y
1% rule is achievable in all of the above. Of all that you listed, I like Bloomington the best. You have Illinois State, Rivian, Country Financial, and State Farm. Plenty of renters and although home to a state school the town does not feel seasonal due to the other major employers.
[email protected]312-338-3004
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
I grew up in Central IL and have zero interest in investing in the area. I have kicked the tires on mid term rental prospects in Champaign-Urbana, but that's it. Everywhere else has a declining population and not a lot to get excited about long term. The appreciation on rent and property values is going to be below the rate of inflation.
High property taxes and increases in insurance are very real there as well. There has been a real uptick in storms and insurance claims in the past few years. Premium increases are rippling through the market; the state is also always going to be financially strapped/high tax due to union pension commitments from past generations and the high tax, high services nature of Chicago.

I'd highly recommend getting on a plane and driving around before you buy anything there.
Sorry if that was a bit much. Can you pull off a BRRRR and 1% rule? Maybe, but it's likely going to look a lot better on a spreadsheet than in real life.
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Kaveh Narimani
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Real Estate Agent · UT · Member since 2023 · 27 posts · 22 votes
1y
Quote from @Travis Timmons:

I grew up in Central IL and have zero interest in investing in the area. I have kicked the tires on mid term rental prospects in Champaign-Urbana, but that's it. Everywhere else has a declining population and not a lot to get excited about long term. The appreciation on rent and property values is going to be below the rate of inflation.
High property taxes and increases in insurance are very real there as well. There has been a real uptick in storms and insurance claims in the past few years. Premium increases are rippling through the market; the state is also always going to be financially strapped/high tax due to union pension commitments from past generations and the high tax, high services nature of Chicago.

I'd highly recommend getting on a plane and driving around before you buy anything there.
Sorry if that was a bit much. Can you pull off a BRRRR and 1% rule? Maybe, but it's likely going to look a lot better on a spreadsheet than in real life.

Thanks for the information Travis, Yea it seems like the high taxes and insurance premiums are going to make this less desirable. i appreciate your input.
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
1y
Hello there @Kaveh Narimani - Try to connect with @Brad Stegall, he has an awesome meetup in Peoria, Illinois.
Being that you are from Utah, how did you pick that central Illinois market?
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
@Kaveh Narimani I don't want to crap on your ideas. A skilled operator can still make money there, but if you are long distance, have no connections to the area, and just like it because it is cheap, it's probably going to take a lot of time/hassle and underperform index funds.
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Kaveh Narimani
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Real Estate Agent · UT · Member since 2023 · 27 posts · 22 votes
1y
Quote from @Jonathan Klemm:

Hello there @Kaveh Narimani - Try to connect with @Brad Stegall, he has an awesome meetup in Peoria, Illinois.
Being that you are from Utah, how did you pick that central Illinois market?

I went to high school in Bloomington before i moved to Utah but i havent been back there since. my uncle lives there and he has a couple of multi-family rentals so i wanted to get a little more info on how the area is doing.
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
1y
@Kaveh Narimani that's a different story altogether then. I had the impression that you were just scouring the map on Zillow, saw homes for $65k, and thought it was an out of state market worth pursuing.
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
1y
That's awesome @Kaveh Narimani! I always believe the best place to invest is where you have the most significant advantages.
Often, those advantages are boots on the ground and market knowledge, which are the two things you have/are working on.
I think, in general, you will find all those central Illinois areas provide decent cash flow with low appreciation - generally speaking. I also think the real estate community is rather small, so will be a situation where knowing the right people will make all the difference.
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