Thoughts on Chicago? Appreciation and Cash flow?

Question

Curious to hear your thoughts on Chicago, haven't heard much about it. Thanks!

Andrew Postell · Answer

@Jesse Leigh if you live in Illinois then I would certainly suggest to try to invest there first. I mean, I know you've got other states right next door too and I think those are good as well.  What I mean here is that investing in your local market, if you can, is significantly easier than investing out of state.  I'm saying being a 15+ year out of state investor. If you do invest from a long distance, you may never see your asset.  That's an ENOURMOUS amount of trust/money to put into a stranger's hands.  What I mean here is that if you know someone in a different city...but that city may not have as good as numbers as this other city...then stick with the city where you know people.  One wrong move, one wrong contractor, one wrong vendor…will erase any "benefit" one city has over another.  Your network is the most important piece for any potential returns when you invest out of state.  It's so much easier to build that network locally than from a long distance away as well.  Just some things to think about.

Crystal Smith · Answer

If you want to get information about Chicago on BP you have to set up your key words search and then anytime Chicago is mentioned you'll find out more about Chicago.

So here are my thoughts about Chicago- We have invested in the Midwest, SouthWest & Southeast.  I won't go through all of the states.  The majority of our investments are in Chicago.  Why?  It's the 3rd largest MSA in the country with over 100+ submarkets. 77 of the submarkets are in Chicago proper while there are many submarkets outside of Chicago (The suburbs). You can invest in single families to flip, multifamilies and commercial to hold.  When it comes to cash flow - Honestly that's a function of how you manage your business, your strategies, and what submarket you choose to explore.

John Warren · Answer

@Jesse Leigh the Chicago forum here on BP is one of the most active local forums you can find. There are a ton of folks making a lot of money in Chicago. The appreciation for me personally has been excellent over 9 years, and the cash flow is real. It isn't "easy" in Chicago, just like it won't be easy in Columbus or Indianapolis. The difference is, if you live in Chicago you have a great deal of control on how your asset is performing versus investing out of state.

While it is also true that Chicago leans tenant friendly, you can mitigate a lot of that risk by investing in areas that have a stronger tenant base. Most of our tenants are reasonable folks, and the buildings in A and B level communities have mostly routine issues (leaky drains, roofs, etc).

Jonathan Klemm · Answer

Hey @Jesse Leigh!  If you don't have keywords setup already consider doing that under the bell on the upper right corner of the task bar.

Chicago is massive and like most metropolitan areas it has BOTH appreciation and cash flow.  I believe each persons individual situation will differ on which type of investment they make.  If you are trying to work you way out of a W2 you are going to want cash flow, but if you are looking for longer-term wealth you may want a bit more of an appreciation play.

Where are you at with your investing and where do you want to go?

Brie Schmidt · Answer

Chicago is a great market and there are many different submarkets each with their own pros/cons.  Do I think the entire market of Chicago is good to invest in, absolutely not.  So the answer really depends on the areas you are considering.

Thoughts on Chicago? Appreciation and Cash flow?

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