Southside Chicago Investing

16 Replies

I don't know anything about the southside of Chicago.  Can someone tell me where to invest, to get the most bang for your buck(not Hyde Park)? I am looking for a 4-flat to owner-occupy, i.e. safe neighborhood.

Hi Victor!

How far south ?

How far west?

And what is your budget?

Marvin

@Marvin Anaya I'm using an FHA so the max for 4-unit is $703k or $565k for a 3-flat.

I have no knowledge of that area, so I don't have any boundaries. Just looking for good rent to price ratio in area with quality tenants.

@Victor Olowu For those prices you can buy just about anywhere except Beverly or Hyde Park but the edges of Hyde Park you could.  There is plenty of good areas or blocks but if you stick with going around UofC then you will do good.  

Originally posted by @Victor Olowu :

I don't know anything about the southside of Chicago.  Can someone tell me where to invest, to get the most bang for your buck(not Hyde Park)? I am looking for a 4-flat to owner-occupy, i.e. safe neighborhood.

 Can you share why you say "not Hyde Park"?  

Victor Olowu washington park is not to far from Hyde park. I just seen a couple of multi units for sale. And it's a descent area.

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Victor Olowu I specialize in multi family investments on the south side of Chicago. you're going to move in as owner occupant the most walkable location would probably be Hyde park and north east WOODLAWN. Also occupancy levels are high and you get the highest year over year rent growth. Other areas to consider would be North Kenwood and the Gap. There are parts of other areas that are okay however, as you know investing on the south side can be tricky as cap rates and other investments indicators can change in a block by block basis.

Tony, Do you have any experience as far as Joliet or Park Forest? I am going to look at a few single family homes this weekend in Park forest. 4 homes with one owner, free and clear and a motivated seller willing to take on seller financing. Sounds like a decent deal with reasonable Cap rates, but the taxes are insane. The other area I like is joliet. Its a little closer to where I live and taxes are reasonable by Illinois standards. Any input?

Nathan Waters unfortunately I haven't done any deals in Park Forrest.

Your numbers are a little high for some areas of the south side. Are you looking for a project with substantial upside, or a turnkey project? They'll be priced very differently. 

For example, I buy 6 unit buildings, distressed for about $75,000 and then put about $130,000 of renovation. Once they're leased up and stabilized, they appraise for north of $300,000. So I'm able to usually generate decent equity within 6-12 months.

I have a 6-unit building near Washington Park that could be a fit for you. I also have one on Essex that is fully turn-key. Let me know more what you're looking for and I can share our financial model and how we conduct these projects. They're pretty straight-forward, provided you have an outstanding team. A good deal, badly managed, is no deal. That's really the key because deals are everywhere. It's all about the team.

@Crystal Smith I only say 'not Hyde Park' because what I have seen in that area so far has been overpriced, and would not be a cash-flow investment, maybe an appreciation play though, but I don't know the area enough to know.

Thanks @Mark Ainley I'll look in that area.

@Byron McGhee I'll go do some drive-bys of the Washington Park area and see what's available.

@Victor Menasce I'm looking for a moderate project, so anything short of a full gut-rehab. Those numbers I posted are just the FHA max.

Nathan Waters certain areas of park forest I would not buy in. Let me know how much they are going for and what street I have a few in sauk village that I'm looking to free up cash, they cash flow great. I'm not motivated but all are rented and close to being maintenance free.
Originally posted by @Victor Olowu :

@Crystal Smith I only say 'not Hyde Park' because what I have seen in that area so far has been overpriced, and would not be a cash-flow investment, maybe an appreciation play though, but I don't know the area enough to know.

Don't dismiss Hyde Park or Kenwood.  Cash-flow opportunities are available it's just a matter of patience, timing & strategy.  You should also consider Bronzeville.  There are sections that will probably meet your criteria & the numbers will make sense.  We're closing on one today.

@Tony Hardy you are definitely right that things change every block almost on the Southside,  and you really need to know where to look. I'll check out the areas you suggested. Thanks.

Originally posted by @Edward Mccracken :
Nathan Waters certain areas of park forest I would not buy in. Let me know how much they are going for and what street I have a few in sauk village that I'm looking to free up cash, they cash flow great. I'm not motivated but all are rented and close to being maintenance free.

 One of the homes is on Minocqua. I am not very familiar with this area which makes me a bit hesitant. Its about 1 hour from where I live which is is farthest distance I would feel comfortable investing. I would prefer staying a bit closer, but if the deal is good, I may go for it. they are going from 50-90K per home. Only one is currently rented, the others have just been rehabbed. I have enough income to cover expenses while finding tenants, Do you have a link or pictures with some information of the homes you are looking to sell?

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