Rental Property Investor · North Chicago, IL · Member since 2019 · 15 posts · 1 vote
Hello everyone!
Super excited for my first post.
I am a young investor looking to buy my first property after two years or credit building and saving.
I’m looking for single family homes to house hack. Then hold as a medium- long term rental. Within 40 minutes of Waukegan.
Question number 1. My surrounding markets are both north Chicago and southern Wisconsin. Can anyone give advice if they have experience with either market? And the good arias they like?
Question number 2. Does anyone have realtors in these arias that they like working with for investors?
I know that’s a lot! Any advice is much appreciated. Done hours of research online and am just looking for some boots on the ground advice to help out a little bit more.
I think Kenosha WI which is boarder of Illinois and Wisconsin, lot of people from Illinois moving to that area. They have a big development going on and there is a big market, Woodland there and Wisconsin, has no food tax so on the weekend they are packed with people from Illinois. (I am away from there for two years so if I give you wrong message sorry!) Also comparison to the housing price in Illinois, Wisconsin is much better and Kenosha is becoming a kinda part of Chicago I think.
I think Kenosha WI which is boarder of Illinois and Wisconsin, lot of people from Illinois moving to that area. They have a big development going on and there is a big market, Woodland there and Wisconsin, has no food tax so on the weekend they are packed with people from Illinois. (I am away from there for two years so if I give you wrong message sorry!) Also comparison to the housing price in Illinois, Wisconsin is much better and Kenosha is becoming a kinda part of Chicago I think.
@Patrick Naughton I get a lot of inquires from people in Chicago about investing in Milwaukee - there is a general frustration with expenses and politics in IL. People look at Milwaukee and the grass seems greener. The first misunderstanding is that they compare a Chicago B or C area with a Milwaukee D neighborhood, which makes the price difference look spectacular. The is of course a reason why most local investors know better than buying in those neighborhoods. The median sales price for a single family is about $175k and that is lower than Chicago of course, but by the time you give up your home field advanatage, hire a PM, have to drive up here all the time - I am not sure if the difference is financially worth it.
@Patrick Naughton Wisconsin generally has laws that lean more "pro-landlord" than Illinois. Wisconsin also has laws on the book the prevent most mandatory landlord inspections. (I.e. where municipalities require annual inspections and licensing).
Kenosha is a good market. It's a stable market. Its been a popular market for a few years now so competition is tighter. Racine has deals to be had but its prognosis is different than Kenosha's without the certainty of FoxConn. Beloit is a good upcoming market on the Wisconsin side.
@Patrick Naughton it looks like you are from the same area as me! I was raised in the Zion/Waukegan area. There are plenty of solid opportunities close to home in Illinois, and Waukegan has traditionally been a decent spot to pick up C class rentals. You can also focus in on military housing in that area by the Great Lakes Naval Base, which is a very good strategy. You can also do short term rentals focused on the graduation there at the base (although you might want to wait for Covid-19 to blow over!).
@Marcus Auerbach is correct when he mentions that the grass always seems greener on the other side. Illinois has lots of problems, but for most investors it is a waste of time to drive two or three hours when you are located in the third largest MSA in the United States. There is a reason Chicago is a primary market. We have amazing building inventory for 2-4 unit investing, a massive economy and enough sub markets for you to pick your strategy and run with it. Once you figure out the real estate tax game and how to protect yourself there, you will make a lot of money here.
@John Warren I work near the base so I’m very familiar with the housing demand that comes out of it. I haven’t thought of the opportunity for short term rentals for the graduations. That is a great idea! Thank you for the advice
@Patrick Naughton, welcome! Have you considered areas like Round Lake/Grayslake/Lake Villa/Lindenhurst? I see decent options there frequently, depending on your strategy and goals.