Belvidere, IL · Member since 2009 · 88 posts · 22 votes
12y
Those numbers will probably be pretty close for most of the Rockford area.
The area you are talking about can have way higher cap rates. In some cases you can buy homes for around $10000 depending on the exact area you are talking about over there. Lots of the homes will need lots of work and may need lots of attention from a property manager.
That said there are some great opportunities in that area, but if you do not know the area make sure other members of your team are very familiar with it. The area you are taking about has a wide range of properties in it from median to very low income. There are some amazing opportunities to be a part of revitalizing whole communities in that area, depending on how big your vision and plans are.
Investor · Rockton, IL · Member since 2010 · 4 posts · 2 votes
12y
I invest north of Rockford, in the Loves Park and Machesney Park area. Not the same area your looking in but I'm happy to share my numbers. Cap rates are in the 8 - 10% range and the vacancy rate is right around 8%.
Belvidere, IL · Member since 2009 · 88 posts · 22 votes
12y
Those numbers will probably be pretty close for most of the Rockford area.
The area you are talking about can have way higher cap rates. In some cases you can buy homes for around $10000 depending on the exact area you are talking about over there. Lots of the homes will need lots of work and may need lots of attention from a property manager.
That said there are some great opportunities in that area, but if you do not know the area make sure other members of your team are very familiar with it. The area you are taking about has a wide range of properties in it from median to very low income. There are some amazing opportunities to be a part of revitalizing whole communities in that area, depending on how big your vision and plans are.
Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
12y
Rockford is in the top 3 cities for most foreclosures in the country (flint & Detroit are in there too); manufacturing town so lost lots of jobs when things went south.
IMO it's a great opportunity but too far away for my taste.
Rental Property Investor · Rockford, IL · Member since 2014 · 385 posts · 702 votes
12y
Rockford sorry I didn't specify. If you need any help in that area please let me know. We will have 20 units in Rockford in the next five weeks we are actually moving to the area to manage and grow our portfolio.
Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
12y
That's a big move @Philip Williams , congrats! I just moved from Roscoe (great schools if you have kids) back to the South Suburbs last fall. Are you going to manage yourself or hire it out?
As others have said, you can get some great returns out there but neighborhoods can change very quickly.
Rental Property Investor · Rockford, IL · Member since 2014 · 385 posts · 702 votes
12y
Yes it certainly is! One reason we are moving out to the area at the moment is we don't have children yet. We plan to in the next couple years but for now we can concentrate solely on the business and not have to worry about school districts and things like that at the moment. I've never had any aspirations of being a property manager except for my own properties, but i'm sure from posting on here other out of the area investors who are interested may approach me to help them with there property!
Residential Real Estate Broker · Winston Salem, NC · Member since 2011 · 345 posts · 120 votes
12y
I know quite a few investors are looking out there now, but I am hesitant. I've seen nice priced right units sit way too long because of unemployment, population decline, crime etc.
Have a good marketing plan and tenant screening in place!!
Investor · NH · Member since 2016 · 134 posts · 61 votes
4y
Am looking at a large multifamily (townhome style) Class B asset in Rockford that is 0% vacant...does anyone have a current/accurate feel for both cap rates and vacancy trends here in this area?