Chicago, IL · Member since 2016 · 238 posts · 68 votes
So I'm waiting on my first deal still, but there's a chance it falls through (condo, short sale, pending bank approval currently), and if it falls through, we're considering a 3-flat (house hacking), possibly on the southwest or west side of the city (following the pink line basically).
From my admittedly little experience of the neighborhoods, are they showing any sign of appreciation or gentrification? I'm currently in Albany Park and prices are skyrocketing so if this deal falls through, there's a real chance that another might not pop up in my neighborhood, at least close enough to the brown line for me to consider.
I've personally always felt comfortable and safe when in LV, but I'm not sure if anyone investing in the area knows if there are any signs of price increases from Pilsen that might be spilling over to the west.
I have to say little village is not a place I was familiar with at all. Base on the post on this thread I will make a trip tomorrow and just check out the vibe and feel of the neighborhood. I'm in process of looking for a househack duplex. Just finished pre approval and now looking for property. Thank you all for your input. If any of you in little village are able to meet I'd love to buy you coffee
I'm in Albany. On my block there are two SFH for sell, both at over $900K. I saw a great three flat near the park - smaller size- it sold cash at more than asking price $385K on day one. It's too hot and it scares me.
I had been looking at Little Village for a while. It's pretty dry and rents are low. However, contact @Matthew Olszak. The area is very insular, and I don't think there will be any appreciation. It's separated by expressway, train tracks, ghetto, and California. Hype may increase the prices in the near future, but it may not.
Following the trends in Pilsen, There are some opportunities to get into REOs and multiunits, tough many are requiring 203k loans. There are small building projects around my 2 mile radius for new homes and shopping centers that are leading me to believe that the Mckinley Park crowd is moving westward and will hopefully see a millennial shift within the next 5 years...definitely work looking into as long as you were ready to rehab for buy and holds (small profit for flips)
Thanks @Kimberly Dunbar for the info. It would be buy and hold, but would probably start as house hacking with an FHA loan, with us eventually moving and refinancing. We're going down there tomorrow to hang out for the afternoon and get a feel for the neighborhood. I only with that the train was closer to 26th. From what I've heard, 26th is the better place to be as Cermak gets closer to North Lawndale, but my wife and I both work downtown and so we're trying to make sure that the area is good enough for us to walk to and from the train while we're building equity in it.
Hey @Frank S., so we're just going into contract on a 2-flat in Little Village. Our offer was accepted and we have an FHA loan all lined up. Hopefully closing in July. We're on the northeastern side of the neighborhood, to the east of the California Pink line and near the shopping centers with Pete's Fresh Market, etc. in them. Assuming inspection/appraisal go well, we should be good to go!
Nice! We're considering doing quite a few buy and holds in the area if this first one works out for a year. With the low cost of living in the neighborhood and low prices (especially the closer to 26th you are), we might be just saving up to do 20% commercial loans on other properties where we can stay closer to the train and keep our jobs downtown.
Awesome I have been looking at little village myself, I think if the politicians in springfield can get there act together the place could gentrify in 5-10 years. The rents do seem to be dirt cheap however. Out of all the areas in Chicago Little Village to me makes the most sense.
Nice! We're considering doing quite a few buy and holds in the area if this first one works out for a year. With the low cost of living in the neighborhood and low prices (especially the closer to 26th you are), we might be just saving up to do 20% commercial loans on other properties where we can stay closer to the train and keep our jobs downtown.
All systems go. 90% sure I am closing in the area before the end of June. I'm looking to meet other investors in the area, we can work together to find deals, share deals, and help improve the area.
I will be spending many weekends there to get the place ready to rent. We should meet for coffee.
Frank Sanchez how is the building going? What part of the neighborhood are you in? I have cruised down that way once before looking at a few places and think so am again this week. Rents are very low low and most places need tons of work. Has anyone found out if the area can attract good tenants in the $8-900 range for a 2 bed apartment if the proper renovation is done. I'm thinking east of California. I see lots of listings on Craigslist in this range but I have no idea if they area renting or if it's all section 8. Thank you.
Hey, glad I got the notification for this. I've been meaning to update here as well. Just closed on a 2-flat East of California near Cermak. We'll be house hacking so we're moving there over the next 6 months. The unit were moving into is a 2br spread across 2 floors and it was rented for 875. I can't speak to the quality of the tenants, but I hope to have an update on the 1br tenant soon. He's paying 675, and seems good so far.
Also, Frank, once in, I'd be up for grabbing a cup of coffee. I know exactly zero REIs in the area, so it'd be nice to meet a like-minded investor.
@Lucas Hammer, sure. I am west of California, near Cermak. I will be there Sat and Sunday working in and on my business. I need to put some sweat equity and learn how to deal with contractors. It's super fun! Let's grab coffee at Dunkin' Donuts on Cermak and Kedzie.
@Jesse Milligan, $800-900 may be attainable in Pilsen. However, building prices are much higher. You will need some serious renovation in Little Village and good luck to get that through regular residents. I will pursue section 8, the maximum payment for a 2/1 is $1200 - yep, $1200! However, it comes with extra research and planning. I will give it a shot.
A 2/1 in Little Village oscillates between $450 to $750- It's all over the spectrum. I noticed my vintage unit had a lot of interest at $750 pre-renovation. So, I will aim at $850 ( priced high for the area) and see if that lands anywhere.
@Matthew Olszak is a realtor, real estate investor, and General Contractor in the area. I highly recommend his services.
@Frank S. Awesome, I'll let you know if we make it down this weekend. We're also prepping our current place to move out next month, so we haven't figured out which place we're working on and which days we'll be there.
As far as the rents, they're definitely increasing. A lot of the ones closer to $400 seem to be long-term residents living in buildings with landlords that are afraid to raise the rent. With Pilsen prices going up and up, it seems like the rents are climbing along the tracks. 26th is still lower than the Pink Line from California going East, but the price increases are heading that way. Having just found out that there's a 24-hour bus that goes from 26th to downtown will probably help that trend also.
@Lucas Hammer - I ran a test add and had three showings. One was a hipster couple from Pilsen. Second, a nurse from Rush and her child. Third, evicted family. The apartment needed work and unfortunately, I couldn't receive an application from either one, they needed the place sooner than I could have it ready. :)
However, I realized that using "Cermak" as a reference point, was a good thing. Cermak is the main street in Pilsen, while 26th is for Little Village.
Hi All, I am looking to buy in Little Village now looking at this thread from a year ago, and I have a few questions!
1) Will you share your experience over the past year?
2) Heating: Why are gas space heaters so common in un-renovated Little Village multi units, has anyone replaced gas space heaters with forced air heating & what was the cost.
Hi All, I am looking to buy in Little Village now looking at this thread from a year ago, and I have a few questions!
1) Will you share your experience over the past year?
2) Heating: Why are gas space heaters so common in un-renovated Little Village multi units, has anyone replaced gas space heaters with forced air heating & what was the cost.
1. So far so good.
2. Yes. I wouldn't do it if you don't have to. Wall units work fine, get one in the kitchen and one in the living room, done. They smaller houses have two chimneys, connect the exhaust there.
Cost for a small 2/1 could look like this
$2800 to 3500 for furnace and duct, it depends if you want it sealed, spiral, rectangular, unit efficiency, etc.
$300 for electrical run
$50 for CO/smoke detector
$300 for gas
$600 to build new closet for furnace door, framing, drywall, etc.
$800 to provide new soffits, you don't have to do this.
Add a considerable markup for permits and licensed contractors. I have a great HVAC guy if you need one.
I have to say little village is not a place I was familiar with at all. Base on the post on this thread I will make a trip tomorrow and just check out the vibe and feel of the neighborhood. I'm in process of looking for a househack duplex. Just finished pre approval and now looking for property. Thank you all for your input. If any of you in little village are able to meet I'd love to buy you coffee
I bought a 3 flat in Little Village，right at Cermak and Rockwell, rents for about 1500 a unit (3 bed 1 bath). I had plenty of interest at this price point.
@Michael K. was your building rehabbed prior to buying or did you rehab? Is $1500 market rate or voucher tenant? What do you think of the west side of Little Village or did you primarily look on the east side closer to Pilsen?
I bought a 3 flat at Cermak and Ridgeway. It is a huge three bedrooms. My rent is $1350. It is voucher tenant. It is impossible to find good R0I property at Pilsen. My rentals are at North of Little Village and south of Pink line. My ROI is about 2%.
@Ryan Canfield Apologies for delay, just started using the site again. The building was partially rehabbed, market-rate tenants. Mostly students and recent grads.