How is the market in Chicago?

Question

I have a potential job opportunity that could bring me to chicago. Was wondering how the multifamily market is in the area. From City feet.com there seems to be some great deals (some 2% rulers) based on what little info I could get from rentometer.com.

But how is the rental demand look in the area? Are there high vacancies? And is it relatively safe?

Is chicago similar in detroit in that they suffered alot from the recession and will take a long time for it to recover?

Some insight would be appreciated as I am seriously considering moving to the area.

Shara Carlton · Answer

Originally posted by @Larry Smet:
	   Hey @Samson Kay

Yes. Chicago is weird like that. You can be on one block and the values are extremely low, then, go two blocks down and you're looking at million dollar mansions! You definitely need an inside person to give you the scoop. If you have family or friends here, that's the best place to start.

I, myself am a wholesaler on the south side and I have been getting word of some sweet redevelopments planned here for the near future.

I dont think Chicago is a bad idea, especially if you have a job already.

John Weidner · Answer

It's a big city (over 200 sq miles) so there are lots of submarkets you need to be aware of.  I personally switched my model from landlording to flipping but there is good opportunity still in Multi Family.

Larry Smet · Answer

Hey @Samson Kay

You were asking about safety - there's a handy resource to assess that by determining the crime in your area of interest in Chicago:  you can check it out here - http://crime.chicagotribune.com/

Just put in the address or area that you're interested in.  Chicago can be block by block, so don't assume that a whole area is good (or bad) based on reputation alone.  A good property manager who specializes in the area that you're interested in would be very helpful.

Let us know if you get the job!  :)

Larry

Brie Schmidt · Answer

I love the Chicago market!  We are a very large city so we have a few different markets here in my opinion.  The North Side of Chicago is a higher entry point, and you are more around the 1% rule - but the rental market is very strong and you have great appreciation opportunities.  The South Side is more like Detroit. with a lower entry point, more subsidized housing, and not as strong of a rental market.  Then there is also a surburban market as well - but I do not know too much about it