Chicago: Investing in Hermosa

5 Replies

I'm looking at a few multi-family properties in the Hermosa neighborhood. Does anyone have experience dealing with properties, flipping, or renovating and renting in this neighborhood? With the way Logan Square is growing and growing I feel like the push west will move to Hermosa within a few years.

Hey @Iain McFarlin ,

I have not done any flips or buy and hold deals in Hermosa area. However as a GC I have done somewhere north of 50 Roofing jobs in that area this year alone. 

Like most of Chicago it seems to be very block by block, with nicer neighborhoods on the East side of Hermosa. So be careful with your Comps. 

I don't doubt that some time in the near future(5-7yr),Hermosa will be much nicer than it is today; as Construction and Development continue to head that way. However I would make sure that whatever deal you are buying makes sense financially with the value it has today (no speculating), while your equity builds organically. 

As Robert Kiyosaki (Rich Dad Poor Dad, author) would say, you make your money when you buy.

Originally posted by @Iain McFarlin :

I'm looking at a few multi-family properties in the Hermosa neighborhood. Does anyone have experience dealing with properties, flipping, or renovating and renting in this neighborhood? With the way Logan Square is growing and growing I feel like the push west will move to Hermosa within a few years.

Hermosa's tricky. If your objective is to flip, make sure the comparables are only in Hermosa. We were looking @ a property in Hermosa a few weeks ago. When we first ran the comparable numbers using a mile radius we picked up properties in Logan Square. We reran the numbers to only include Hermosa & there was a $100K difference in the ARV. The property made sense to purchase for a hold, but we couldn't justify it for a flip.

Thanks @Tony Reyes for the information! So it is assumed that people are at least taking care of properties or rehabbing ones to hold or flip.

@Crystal Smith the properties I am looking at are just west into Hermosa from Logan Square. That ARV difference is insane. I am also looking for a buy and hold to be an owner occupant, then in a few years move on, rent out my unit, and continue the slide into real estate. Thank you for your insight!

I've been wondering the same thing! One of the broker's we work with mentioned that Logan Square is getting a mid-rise soon right by the California stop so once those start moving in the area I'm afraid even as a renter I'm gonna get pushed out! 


@Melissa Szanati , that is correct! It is getting a huge apartment building on Milwaukee just south of the L. There are also more plans and talks of other mid-high rises being built. I used to go out to places around Kedzie/Armitage so I know the area a decent amount, but never went past Pulaski much. People that I've talked to that live in Humboldt don't have much of any bad things to say about Hermosa, especially right there at Pulaski.

Seems like a decent investment to me as the push moves west. Logan Square is so large though it is hard to say or estimate a zone that will get changed by it.