I'm wondering if there are any investors that have experience with buy and hold properties in the suburbs of Chicago. A deal just sort of fell in my lap, the numbers are good, but I'm not to keen on the high property taxes in the suburbs in comparison to the property taxes in Chicago. I want to know how your buy and hold investments perform considering the high property taxes in these areas.
Thanks a lot
Hey @Jarrod Anderson ! Welcome aboard! Check out the nearby members and network https://www.biggerpockets.com/meet, it will help you a lot to find partners that can help you out in investing.
welcome @Jarrod Anderson
which suburb are you looking at?
@Chris T. The deal that came across me was in the south suburbs (Riverdale). From my understanding, all of the suburbs of Chicago had pretty high property taxes. Is buy and hold worth it to you in these areas?
yes, property taxes in our state are high. However, if the schools are decent, and the rent roll supports it, one can cash flow if they buy it right. You need to find the suburbs that are growing and at least not declining.
My rentals so far are in Dupage. Looking at Will county, and a few in the Cook county.
I am not familiar with Riverdale but I agreed they seemed to have higher property taxes compared to property values. Which to me may be a sign of slow decline.
However, there are some TK providers that buy in these areas, and maybe focusing on section 8 rentals - where the cash flow is greater.
check out this forum tread as well
Originally posted by @Jarrod Anderson :
I want to know how your buy and hold investments perform considering the high property taxes in these areas.
As long as a property meets our ROI or hurdle rate requirements, not matter location, the we consider adding it to our portfolio. Many properties in the South Suburbs fail to do this because of taxes but we don't exclude evaluating them. If a property has "fallen in your lap" & it meets your requirements with the taxes considered, then you should pursue it.
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