Updated almost 6 years ago on . Most recent reply
Looking for multi families in Chicago !
Looking to invest in the South side of Chicago. Interested in multi family homes. Would love some advice on where to start.
Most Popular Reply
Hi Chris,
Bronzeville, South Shore, Washington Park, and West Pullman neighborhoods are gaining traction. I would focus on transit-oriented properties within walking distance of an elevated train station (The "El"). Be very conservative with respect to RE tax underwriting. City of Chicago is up for re-assessment in 2021 and new assessor is taking an aggressive approach to new fair market value assignments - particularly for apartments. I would underwrite taxes based on a fair market value assignment that is no less than 80% of your purchase price. Cook County has a convoluted formula for determining RE taxes from the assigned fair market value, so I would definitely get familiar with how to calculate. Best of luck!