Chicago or New Orleans?

Question

Bigger Pockets Family,

I've been considering doing some distance multifamily investing in areas that I have either lived or frequently visit. I've been strongly considering Chicago and New Orleans as of late. Does anyone have any experience with both/either? I'm predominately looking for cashflow, small multifamily, under $500k. I know that in both areas it depends on the neighborhood and would appreciate any info on which neighborhoods in either city this would be possible. For either city I am open to long term rentals but would prefer if one unit could be used as a short term rental so that during my visits I can used it myself.

Crystal Smith · Answer

Neighborhoods to consider for STR in Chicago Proper- Just about anywhere North of 290 except maybe Austin and West Garfield Park; Some good targets south of 290- Lower West Side; Bronzeville/Oakland; Bridgeport; Woodlawn (Near the University); Hyde Park (Needle in a Haystack); Kenwood (Needle in a Haystack); Grand Boulevard

Reid Chauvin · Answer

New Orleans has plenty of small multifamily, but the city has strict laws around short term rentals. I'm pretty sure you need to occupy the property to be able to get an STR permit.

Bruce Woodruff · Answer

I'd pick Louisiana out of those two.... a) better weather, b) more favorable to landlords...

Darvin Johnson · Answer

@Jonathan Klemm - I'm definitely still looking at things in Detroit and the surrounding areas. Some of the difficult things for me lately and I'm sure everyone else is finding something that I consider a good deal. I was stationed in San Diego and recently speaking with a friend about the market out there, by comparison EVERYTHING here is a steal.

Ideally I'd love to cashflow $200-300.

Crystal Smith · Answer

It depends on how you measure "deals are better"  Some of the measures access to entertainment & access to business corridors which results in low vacancy rates. The vacancy rates North will be lower.

Darvin Johnson · Answer

@Will Sifert - It definitely could have gone that way. But then I'd have had to add my city in as well haha.

Darvin Johnson · Answer

@Charlie Beneke - I really appreciate the info/breakdown. I was actually having a conversation about this recently regarding finding a neighborhood with it's own things to do so people won't have to only go downtown. I'll have to look more into what each neighborhood has to offer. Obviously the needs of short term snd long term will be slightly different but nowadays there's a lot more overlap than in the past.

Darvin Johnson · Answer

@Crystal Smith - Thank you for the suggestions. I think from what I typically here is North is better but deals are better South (for a reason).

Darvin Johnson · Answer

@Jonathan Klemm - Yes, USN. Thank, I would appreciate that. I wish I'd have taken advantage of the opportunities available to me while I was active duty. But I'm sure we'd all be rich by now if we (fill in the blank) when we (fill in the blank).

Darvin Johnson · Answer

@Reid Chauvin - thanks for the heads up, I'll have to look more into that. I'm not opposed to keeping the units as LTR.

Chicago or New Orleans?

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