Is Chicago multifamily worth the headache?

[Sanjoy V.]

I have been looking for sometime to buy multifamily/apartments 20-100 range. Live in Texas but market to hot for cash flow. Can’t rely on appreciation alone and buy at 5 caps. Out of desperation even looking at Chicago; the cash flow seems tempting in the 9-10 range. Obviously areas like Gresham, guess very high crime and can’t even walk to see property you own. Is it unrealistic to think that you will have Mgmt run the apartments and you just take the cash flow; and have nothing to do with it? what are owner liabilities truly? Can you run it remote? Have it completely inspected evaluated and run by third party management? It seems foolish to do something like this but where else can I get cash Flow; I understand appreciation is probably good no to be limited to none. May be use the cash to buy in tough markets? Is there anyway to safely remotely run these class C high crime area Apt’s? Is there a trick to run these? Thanks in advance!

[Bart H.]

Originally posted by @Sanjoy V.:

I have been looking for sometime to buy multifamily/apartments 20-100 range. Live in Texas but market to hot for cash flow. Can’t rely on appreciation alone and buy at 5 caps.

Out of desperation even looking at Chicago; the cash flow seems tempting in the 9-10 range. Obviously areas like Gresham, guess very high crime and can’t even walk to see property you own.

Is it unrealistic to think that you will have Mgmt run the apartments and you just take the cash flow; and have nothing to do with it? what are owner liabilities truly? Can you run it remote? Have it completely inspected evaluated and run by third party management? It seems foolish to do something like this but where else can I get cash Flow; I understand appreciation is probably good no to be limited to none. May be use the cash to buy in tough markets?

Is there anyway to safely remotely run these class C high crime area Apt’s? Is there a trick to run these?

Thanks in advance!

I used to live in Chicago, imo its not a city you want to try and invest in at a distance, especially on the South side.

Yes, I am sure there are locals who can and will be really successful in a C class or lower Chicago neighborhood , but trust me when I tell you , it's a block by block city, not a place for neophyte investors imo.