Househacking Chicago Neighborhoods

[Michael Mahung]

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

[Steven Caldwell]

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 I great up just north of McKinley…it’s the park I used to play in when I was younger. It’s come a long way since back then. Ima. Huge fan of Humbolt. I live just east of there now. It’s so close to everything(Milwaukee strip an everything on Fullerton)

[Edgar Barbosa]

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 Pleasure to meet you @Michael Mahung! I grew up in Chicago, right next to the Brighton Park area; Marquette Park. I also worked next to Evanston so I'm very familiar with your situation. Many of those areas are experiencing growth. I think that it will depend on your goals and exit strategy, if any, on how you approach your search. Those areas have their advantages and disadvantages in their own right. If you narrow it down further, I believe you will be able to make a more informed decision. Reach out to me if you would like to discuss those areas in further detail. Best of luck on your search. 

[Paul De Luca]

@Michael Mahung

Brighton Park and Little Village have the highest concentration of residential units in 2-4 unit buildings in Chicago (70% and 71% respectively). The areas are comparable in my experience (rents, taxes, demographics). I'm optimistic about Marshall Square (eastern Little Village) with the proximity to the pink line & Pilsen along with a decent retail presence in the area.

I think Canaryville is a bit underrated since I hardly hear anyone talk about it.

[Jesus Santoyo]

Quote from @Paul De Luca:

@Michael Mahung

Brighton Park and Little Village have the highest concentration of residential units in 2-4 unit buildings in Chicago (70% and 71% respectively). The areas are comparable in my experience (rents, taxes, demographics). I'm optimistic about Marshall Square (eastern Little Village) with the proximity to the pink line & Pilsen along with a decent retail presence in the area.

I think Canaryville is a bit underrated since I hardly hear anyone talk about it.

 I grew up in Pilsen and I have seen the movement and growth of the pink line. South Lawndale has a lot of potential as well as north lawndale. A lot of city money put in to these areas. Mackinley park and Douglas park are both iconic parks 

[Michael Mahung]

Quote from @Steven Caldwell:

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 I great up just north of McKinley…it’s the park I used to play in when I was younger. It’s come a long way since back then. Ima. Huge fan of Humbolt. I live just east of there now. It’s so close to everything(Milwaukee strip an everything on Fullerton)

 Thank you! Right now East Humboldt would be my best case scenario (proximity to CTA, Highways & Shopping) - I'll keep looking

[Michael Mahung]

Quote from @Edgar Barbosa:

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 Pleasure to meet you @Michael Mahung! I grew up in Chicago, right next to the Brighton Park area; Marquette Park. I also worked next to Evanston so I'm very familiar with your situation. Many of those areas are experiencing growth. I think that it will depend on your goals and exit strategy, if any, on how you approach your search. Those areas have their advantages and disadvantages in their own right. If you narrow it down further, I believe you will be able to make a more informed decision. Reach out to me if you would like to discuss those areas in further detail. Best of luck on your search. 

Got you, my goals for my first property are to eliminate my housing expenses and potentially cash flow - Exit strategy would be to buy a value add property and cash out refinance after repairs/upgrades are finished to buy another property. I'm planning to use a conventional loan with 5% down on the first and a 3.5% FHA for the second.

I'll keep looking for now and reach out if I do narrow things down - thank you

[Michael Mahung]

Quote from @Paul De Luca:

@Michael Mahung

Brighton Park and Little Village have the highest concentration of residential units in 2-4 unit buildings in Chicago (70% and 71% respectively). The areas are comparable in my experience (rents, taxes, demographics). I'm optimistic about Marshall Square (eastern Little Village) with the proximity to the pink line & Pilsen along with a decent retail presence in the area.

I think Canaryville is a bit underrated since I hardly hear anyone talk about it.

Really interesting, I didn't realize the multifamily concentration was so high - although that does explain why there are so many on the market in that area. I've heard that areas with high concentrations of multifamily/owners tend to be nicer because the owners will take better care of the properties, not sure how accurate that is though.

I'll have to dig into Marshall Square some more, I had overlooked it initially.

Thanks!

[Paul De Luca]

Quote from @Michael Mahung:

Quote from @Paul De Luca:

@Michael Mahung

Brighton Park and Little Village have the highest concentration of residential units in 2-4 unit buildings in Chicago (70% and 71% respectively). The areas are comparable in my experience (rents, taxes, demographics). I'm optimistic about Marshall Square (eastern Little Village) with the proximity to the pink line & Pilsen along with a decent retail presence in the area.

I think Canaryville is a bit underrated since I hardly hear anyone talk about it.

Really interesting, I didn't realize the multifamily concentration was so high - although that does explain why there are so many on the market in that area. I've heard that areas with high concentrations of multifamily/owners tend to be nicer because the owners will take better care of the properties, not sure how accurate that is though.

I'll have to dig into Marshall Square some more, I had overlooked it initially.

Thanks!

 Yep tons of 2-4 units in those areas especially attractive for someone with a lower budget since you can find 2-flats in both of those areas for less than $300k. I think many house hackers don't want to live there since they're not as nice as many of the NW side neighborhoods but if you're looking for something more affordable it makes sense. Regarding Humboldt Park, I recommend staying north of Grand Ave since there's a pretty noticeable difference in the quality of the area (and price) north vs south.

[Jonathan Klemm]

@Michael Mahung - I love all those great Chicago neighborhoods you pointed out.  You can definitely find a nice 2-4 unit in those areas.  I Really like Carnaryville as far as up-and-coming areas with higher appreciation.  

Happy to help, let's make some deals happen!

[John Warren]

@Michael Mahung I am a big fan of Little Village due to the location which several other people have mentioned. I also am seeing a lot of our clients get pretty fantastic rents for rehabbed units. 

I think with any of these neighborhoods, you will need to have a nicer product to attract the right types of tenants. In general, you will need to do some work to get the folks who want to live there for an affordability factor, but who also have the means to pay. 

[Cameron Johansson]

Quote from @Michael Mahung:

Thanks for reading - this will be my first post so excuse any strange formatting.

1. I have lived in the north suburbs of Chicago (Evanston/West Ridge) most of my life and have been wanting to start investing.
2. Based off of a few pre-approval letters, I can realistically afford a multifamily unit under 375-400k

With this in mind, I have been finding a lot of potential properties in the following neighborhoods:
Humboldt Park
Austin

Hermosa
South Lawndale (Little Village)
McKinley Park
Brighton Park
Back of the Yards
Canaryville

Does anyone have any strong opinions about any of these neighborhoods?
I've driven through most of them (minus Canaryville) but I'm not too familiar with the good/bad blocks.

 Get in touch with Michael Scanlon, tell him I sent you he will take care of you!

https://www.biggerpockets.com/...

[Greg Kusnierz]

Hey all, 

Thanks for all the great posts. Just a guy getting in. Learned a lot from this post. Thank you!

Chicago area, looking to get a deal in the next 60 days. 

Greg

[Eudith Vacio]

Hey @Michael Mahung! 

It looks you are most familiar with the North side of Chicago. As a first time homebuyer / house hacker, I always recommend that you live somewhere that you like and Humboldt Park / Hermosa are both great neighborhoods. I personally grew up in the south side of Chicago in Pilsen / McKinley Park / Brighton Park. I am most familiar with these neighborhoods and have found that most provide tremendous opportunity for cash flow / appreciation and have never had issues with finding renters. Canaryville is changing but you might want to drive by these neighborhoods to ensure that you have a good idea as to how everything is laid out. As you might be aware, there is more infiltration of businesses on the North Side. Hopefully changing but its a slower process.