Illinois market?

Question

Hello again everyone!

My wife and I are wanting to move back to the Illinois area and are also looking to invest there as well. It's been a while since I've been there though so I was hoping for some general advice on some places to look for..

We are military so our first idea was to buy near Scott AFB but the crime out there seems a little to high. And that crosses off Rockford as well. Next we have been looking at the Joliet braidwood area, and parts of the northern state such as McHenry county. We've seen a few things that look promising but we just want to hear how other people are doing in the state and if they've been noticing anything.

We would be moving in about two years, but I wanted to get at least one rental out there. Our goal seems to be to get a nice house in Homer Glen area but we would need to work up to that.

Thanks for the discussion!

Aaron Mikottis · Answer

If we are talking about generalities, the West side is considered desirable whereas the east is considered undesirable. Take a look at the location of our housing projects, however, because there is a band along the river on the west side that is a little rougher.

Here is a link to the map I made when I first started looking at Joliet. The orange areas are places I would like to invest in based on a metric I made up trying to find places with a good rate of return while still being in reasonable areas. Now that I know the market more there are more places on the west I would absolutely work in... But you're gonna have a harder time getting a 1-2% deal there. And there's a few east side areas I'm more leery of now. So basically, use this as a launching pad but do more research.

https://drive.google.com/open?id=0ByqwQQCenUK7SFFwOEd4aktRcjg

Nathan Waters · Answer

I am a veteran as well and I invest in Joliet. The taxes are high in general in Illinois but its still less than some of the surrounding areas. Unless you go into Indiana, expect to pay more in taxes. I bought some beaters for around 20K each but like @Aaron Mikottis said, they aren't the greatest areas. Not the worst part of town, but I like the challenge of renovating shitty houses

Nathan Waters · Answer

One is a 1 BR 1 Bath that gets 650 per month. I spent about 8-10K restoring it. The other was a 2 BR 1 Bath that gets 1170 a month. It was a money pit but its bringing in steady rent with a section 8 tenant. @Aaron Mikottis has a more methodical approach on where to buy. He has spreadsheets and maps on the best areas to look into.

Aaron Mikottis · Answer

Hi Christopher,

I invest in the Joliet area and I think that it's fantastic for job growth right now. Property taxes are a little high and the school systems are not the best, but overall it's a strong rental market. Average prices are low, but you may have a hard time hitting that $80k mark unless it's a beater in a bad area. I'd say off the cuff somewhere more around $100-120k would be normal.

Let me know if I can be of any help.

Patrice Boenzi · Answer

First of all,thank you for serving our great country! Me and my family appreciate your sacrifice!

A little about myself- I am a Realtor and investor. I mainly focus on DuPage County. You didn't say, but will schools be important to you? Distance from work or family? What's your criteria? Price range? Single family or duplex?

Scott Steffek · Answer

Demetrius,

MY investors usually look at cash on cash return.  The rate you would receive, depends on the area and what you're looking for. I have one rental area that's bringing cash on cash returns of anywhere from 17-21%. Ironically enough, the city is in Illinois. In Indiana, I can get you 12-18%. I can get you into rental properties for slightly under $50k and they go up to $150k.  The $50k market is very unusual. It's one city and I know 10 investors buying there. However, it's not an area where you buy, rent out and flip within 2 years. It's strictly buy and hold. PM me, if you'd like more information.

Good Luck

Demetrius Davis · Answer

@Scott Steffek what type of cap rates are you able to get for your clients on Indiana properties?

Aaron Mikottis · Answer

@Nathan, I know exactly what you're talking about. There's some really nice historic houses in that belt. I felt like the area was totally fine but my realtor looked at me like I was insane.

I guess it just depends on what you're comfortable with. Because I'm into urban exploring I'm crawling around in areas like Englewood and Roseland all the time. I have a hard time batting an eye at any of the neighborhoods in Joliet, but I suppose from an investor's perspective your mileage may vary.

Cath Hendon · Answer

@Christopher Earling, my partner and I are doing business in NW Indiana and we can help you out, too. Love to set up a time to talk about wants and needs. PM me so we can.

Illinois market?

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