Rental Property Investor · Seattle, WA · Member since 2016 · 53 posts · 23 votes
I'm looking to invest in potential turnkey properties in some of the South Chicago suburbs like Dolton, Matteson, South Holland, and Lansing. I was hoping to chat with some locals who either live in the area and preferable invest in those neighborhoods to get a feel what they are like. I know that the taxes can be very high but the rents seem to make up for the high tax rates. I'm happy to share any insight into the Seattle and western Washington markets. Thank you advance!
Investing in the Chicago South Suburbs depends on your strategy. If you're investing 100% for cash flow & intend on holding the property forever then it's just a matter of running your numbers for rent minus expenses to see if you can hit your target profit margin.
If however you're concerned with cash flow & potentially selling your property later w/ either a small appreciation in price or at least no reduction in value then you need to be careful where you invest in the South Suburbs. We stopped purchasing Single families to hold quite a while back but we do purchase to flip & have done a few deals in the South Suburbs that are also areas where properties are available for buy & hold. Areas we like that fit these criteria: Burbank; Calumet Park; Chicago Heights, Country Club Hill; Glenwood, Lansing, South Holland; Matteson & Richton Park.
I'm sure there are opportunities in Dolton but we've taken it off our list because we always had difficulties w/ the village when we owned property there. Then we could never make the numbers work for any future purchases.
Sam Denny nice areas to be looking in! A lot of the South Chicago Suburbs have room to grow. Meaning some of these suburban areas are filled with working class families, but there may be 1-2 abandoned foreclosed homes per block or so. This isn't the case for all the suburbs you mentioned, however, you will see a change in your investment. Whether you rent or sell outright, you're looking at cheap properties with a decent amount of work out of pocket. Let me know if you need any help finding any properties or information on the areas. I'll be happy to connect with you!
I'm looking to invest in potential turnkey properties in some of the South Chicago suburbs like Dolton, Matteson, South Holland, and Lansing. I was hoping to chat with some locals who either live in the area and preferable invest in those neighborhoods to get a feel what they are like. I know that the taxes can be very high but the rents seem to make up for the high tax rates. I'm happy to share any insight into the Seattle and western Washington markets. Thank you advance!
Sam
Good luck! I hear there can be some decent returns there, as like most of the Midwest.
Sam Denny how's it going, Seattle is a pretty nice city and the job market there is pretty stable too. You don't like investing in Seattle? Just curious why you are aiming at chicago. Also are you only using go rentals in these areas? I stay near those areas and they are pretty good for rentals or flips. You just have to be cautious of some of the ridiculous taxes so be careful. Also if I were you I'll also look into Northwest Indiana they have some slightly higher ROI and CCR numbers than the places you are looking into. If you need any help PM me and I'll tell you more.
Do you have a specific turnkey provider you are working with? I have have experience with Mack, which is a large turnkey provider in that specific area, and it has been terrible.
I had to chuckle when you mentioned Mack Properties. I'm not going to say anymore, but we can help you find good rentals. We have a solid property manager, a contractor to rehab properties as well as other services for long distance investors such as yourself. Remember that turn key properties cost more than if you were to have something rehabbed yourself. We try to keep our rehabs to less than 3 weeks, so your tenants can move in as quickly as possible. I know what Mack charges for properties and we can beat their prices by quite a bit. PM me if you'd like more information. Best of luck to you.
@Adrienne Curtis Thanks for responding! I've noticed that there is a mix of cheap properties and rehabbed properties especially in Dolton. I'm purchasing a property in Matteson but considering some of the other neighborhoods as well. The reason I was considering going through turnkey is to not have to do the rehab myself from out of state and I'm willing to sacrifice some equity and pay closer to market value. I will DM you and we can talk in more detail about some of the neighborhoods.
@Ibn Abney I recently purchased a 4 unit multifamily property an hour north of Seattle that I expect to have a Cap return of 6-7% managing the property myself. I do believe western Washington will continue to appreciate at high rate and the job market is very strong here but I'm looking for cash flow more than betting on appreciation. Finding cash flowing deals around Seattle is very competitive now and there is a ton of foreign money pouring in but I'm always looking. I'm looking out of state as well to find similar if not higher cap rates without having to manage the units myself. I choose Chicago suburbs based on the job market, high rents, and the experience I have had with the turnkey provider plus positive referrals. I'm not as familiar with investing in the city itself. Are you seeing similar cap rates 7-9% with realistic vacancies and maintenance? I'm open to SFH as well multifamily depending on how the numbers work. MFH seem to have higher rent ratio's to price but higher taxes, utilities, worst loan rates. Have to look at each deal separately. Thanks for responding!
@Elbert D. Thanks for responding! I'm looking for longterm hold rentals for cashflow. And yes the taxes can kill some of the 2% rent/price ratios that look really sweet. I have been looking at Indianapolis but the returns seemed better in the south Chicago suburbs. I will send a DM about your opportunities.
@Chris WilsonThanks for responding! I've been working with Mike Fisher at Cab properties. I'm currently in the process of closing my first property in Matteson. I'm a little more hesitant about Dolton, Lansing. Why I started the post. Mike has been very informative and responsive so far which is one reason why I choose to work with him. It's too early to give a fair review but I heard good things from referrals. I'm not familiar with Mack. Thanks for the warning.
It does seem like interesting areas to invest in! This information here is helpful why foreign investors like Chicago.
Also, some local Agents have been telling us that many things are going to improve as Trump has been calling out that city and seems to intend to make the city better. It would be interesting to hear from more locals on what their thoughts are on this?
@Sam Denny hey Sam I have three rentals now in Lansing, one of which I bought from Mike at CAB Properties. I am very happy with him and his team, and as far as location dolton has strong cashflow and Lansing has strong cash flow and decent appreciation. Don't exactly know what you want but I'm sure mike will help you get where you want to be!
Hey Sam! I love the southside of Chicago for many reasons number one property is relatively inexpensive to acquire number two after repair values are excellent! Number three there is a housing shortage for rentals!
Chicago has been getting a ton of action with outside investors. There are so many suburbs and neighborhoods to choose from that provide a solid investment and suit different objectives. Multi-units are my focus right now, and I'm not the only one. In my 16 years I haven't seen this much activity in the multi-unit market.
@Ibn Abney I recently purchased a 4 unit multifamily property an hour north of Seattle that I expect to have a Cap return of 6-7% managing the property myself. I do believe western Washington will continue to appreciate at high rate and the job market is very strong here but I'm looking for cash flow more than betting on appreciation. Finding cash flowing deals around Seattle is very competitive now and there is a ton of foreign money pouring in but I'm always looking. I'm looking out of state as well to find similar if not higher cap rates without having to manage the units myself. I choose Chicago suburbs based on the job market, high rents, and the experience I have had with the turnkey provider plus positive referrals. I'm not as familiar with investing in the city itself. Are you seeing similar cap rates 7-9% with realistic vacancies and maintenance? I'm open to SFH as well multifamily depending on how the numbers work. MFH seem to have higher rent ratio's to price but higher taxes, utilities, worst loan rates. Have to look at each deal separately. Thanks for responding!
If you do go with a turnkey provider, make sure they are really a provider. Sometimes agents just use that word to sell a home. Be sure to investigate the company! You want one that owns, rehabs, and manages the property all in house!
Investing in the Chicago South Suburbs depends on your strategy. If you're investing 100% for cash flow & intend on holding the property forever then it's just a matter of running your numbers for rent minus expenses to see if you can hit your target profit margin.
If however you're concerned with cash flow & potentially selling your property later w/ either a small appreciation in price or at least no reduction in value then you need to be careful where you invest in the South Suburbs. We stopped purchasing Single families to hold quite a while back but we do purchase to flip & have done a few deals in the South Suburbs that are also areas where properties are available for buy & hold. Areas we like that fit these criteria: Burbank; Calumet Park; Chicago Heights, Country Club Hill; Glenwood, Lansing, South Holland; Matteson & Richton Park.
I'm sure there are opportunities in Dolton but we've taken it off our list because we always had difficulties w/ the village when we owned property there. Then we could never make the numbers work for any future purchases.
@Kevin McCann Thanks for responding Kevin! Glad to hear that your rentals are going well in Lansing. I'm just trying to get some more information about the neighborhoods and the response has been awesome. I should really post more on here, haha.
@Crystal Smith@Elbert D. When you say difficulties with the village are you referring to ridiculous tax increases from year to year? Thanks for replying!
@Sam Denny I have a short sale under contract in dolton I will let you know how it goes dealing with dolton. I also just put a contract on another Lansing property with CAB Properties today
@Sam Denny well taxes are expected to go up next year(smh). But there are deals all over chicago and it's suburbs. You just have to obtain them. Even in high tax areas such as Matteson and south holland there could be deals. Same even for up north and out west as well.