Looking for advice on markets to invest in Illinois IL
Member since 2022 · 3 posts · 2 votes
Looking for advice on markets to invest in Illinois IL
Most Popular Reply
Neal FridrichPro Member
Real Estate Agent · Bloomington, IL · Member since 2019 · 23 posts · 8 votes@Luke Salela What’s going on Luke! I am in the Bloomington/Normal market and there is definitely no shortage of 2-4 units. I actually moved here a few years ago from Naperville and can say that your dollar will stretch much further down here. Rivian has their only production facility here in town and they are still bringing in people by the hundreds. So there are plenty of renters!
11 Replies
- Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes4y
Quote from @Luke Salela:
Hi everyone, wanted to reach out as a new investor looking for advice on what markets (cities) anyone investing in IL would recommend for someone looking to buy multi-unit properties from 2-4 units. I am located in Naperville/Lisle area but open to anywhere in IL. Already have a lender and am a licensed broker in the state. Any feedback is apprenticed thank you. Always looking to network!
There’s some bad stuff coming down the pipes with illinois legislation. Illinois is becoming a very unfriendly tenant state.
here’s one of the newest bills currently on the table,
HB5390=Creates the Tenant Protection Act. Provides that a landlord may increase the rent no more than once every 12 months, by an amount no greater than the percentage change in the Consumer Price Index for the same 12-month period or 3%, whichever is lower. Creates the Residential Rental Registry and requires a landlord to pay a rental registry fee. Requires a landlord to register all dwelling units with the Illinois Housing Development Authority by January 15th of each year. Creates the Right to Counsel Program and directs the Administrative Office of the Illinois Courts to contract with or enter a memorandum of agreement with an administering entity to administer the Right to Counsel Program. Creates the Small Rental Property Owner Repairs and Improvement Fund and provides that money in the Fund shall be used by the Illinois Housing Development Authority to provide financial support in the form of grants, zero-interest loans, or low-interest loans to owners with no more than 12 dwelling units. Provides that a landlord found liable for charging rent in excess of the Act shall pay the prevailing tenant damages. Creates the Tenant Bill of Rights, with provisions governing exclusions, the identification of an owner and agent, a landlord's right of access, prohibited harassment, required notices, a landlord's responsibility to maintain, a tenant's remedies, security deposits, notification of foreclosure actions, and the prohibition of retaliatory conduct by a landlord. Amends the Illinois Income Tax Act. Provides for a rental property capital improvement credit. Amends the Code of Civil Procedure. Adds provisions governing the refusal to renew and the termination of a tenancy for other good cause. Removes a provision regarding the notice to terminate a tenancy for less than a year. Makes other changes. Makes conforming changes in the State Finance Act and the Condominium Property Act. Repeals the Rent Control Preemption Act. Effective immediately.” - 4yNeal FridrichPro MemberReal Estate Agent · Bloomington, IL · Member since 2019 · 23 posts · 8 votes
@Luke Salela What’s going on Luke! I am in the Bloomington/Normal market and there is definitely no shortage of 2-4 units. I actually moved here a few years ago from Naperville and can say that your dollar will stretch much further down here. Rivian has their only production facility here in town and they are still bringing in people by the hundreds. So there are plenty of renters!
- Real Estate Agent · Naperville, IL · Member since 2013 · 402 posts · 177 votes4y
@Luke Salela I invest in Naperville. Albeit, there are essentially no multi families here, the surrounding areas do have some. Being you are from the area, I am sure you know how the market is here, but Aurora has some great multi families along with Joliet. Both provide low cost of entry and a start to a portfolio.
- Member since 2022 · 3 posts · 2 votes4y
Quote from @Neal Fridrich:
@Luke Salela What’s going on Luke! I am in the Bloomington/Normal market and there is definitely no shortage of 2-4 units. I actually moved here a few years ago from Naperville and can say that your dollar will stretch much further down here. Rivian has their only production facility here in town and they are still bringing in people by the hundreds. So there are plenty of renters!
Hi Neal, thank you for the heads up I will definitely take a look down there. Do you have any properties down there currently?
- New York City, NY · Member since 2016 · 37 posts · 8 votes4y
Quote from @John Burtle:
Quote from @Luke Salela:
Hi everyone, wanted to reach out as a new investor looking for advice on what markets (cities) anyone investing in IL would recommend for someone looking to buy multi-unit properties from 2-4 units. I am located in Naperville/Lisle area but open to anywhere in IL. Already have a lender and am a licensed broker in the state. Any feedback is apprenticed thank you. Always looking to network!
There’s some bad stuff coming down the pipes with illinois legislation. Illinois is becoming a very unfriendly tenant state.
here’s one of the newest bills currently on the table,
HB5390=Creates the Tenant Protection Act. Provides that a landlord may increase the rent no more than once every 12 months, by an amount no greater than the percentage change in the Consumer Price Index for the same 12-month period or 3%, whichever is lower. Creates the Residential Rental Registry and requires a landlord to pay a rental registry fee. Requires a landlord to register all dwelling units with the Illinois Housing Development Authority by January 15th of each year. Creates the Right to Counsel Program and directs the Administrative Office of the Illinois Courts to contract with or enter a memorandum of agreement with an administering entity to administer the Right to Counsel Program. Creates the Small Rental Property Owner Repairs and Improvement Fund and provides that money in the Fund shall be used by the Illinois Housing Development Authority to provide financial support in the form of grants, zero-interest loans, or low-interest loans to owners with no more than 12 dwelling units. Provides that a landlord found liable for charging rent in excess of the Act shall pay the prevailing tenant damages. Creates the Tenant Bill of Rights, with provisions governing exclusions, the identification of an owner and agent, a landlord's right of access, prohibited harassment, required notices, a landlord's responsibility to maintain, a tenant's remedies, security deposits, notification of foreclosure actions, and the prohibition of retaliatory conduct by a landlord. Amends the Illinois Income Tax Act. Provides for a rental property capital improvement credit. Amends the Code of Civil Procedure. Adds provisions governing the refusal to renew and the termination of a tenancy for other good cause. Removes a provision regarding the notice to terminate a tenancy for less than a year. Makes other changes. Makes conforming changes in the State Finance Act and the Condominium Property Act. Repeals the Rent Control Preemption Act. Effective immediately.”Wow, when are they supposed to be voting on this? Is this all on 1 bill or did you comprise a few together to summarize?
Thank you for the information
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes4y
Hey @Luke Salela - If you can provide a little more context around your goal and strategy that might better help us direct certain areas of Illinois or Chicago to invest in.
Meaning, are you looking for cash flow, appreciation, mix, are you able to househack, how much down payment do you have ready, etc.
I personally love investing in Chicago because there is a ton of old inventory and a wide arrange of price points. Plus in your case, there is an endless amount of 2-4 units down here in Chicago.
Happy to help point you in the right direction with some further clarifications.
Quality Builders4.968 Reviews - Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes4y
Quote from @Crystal Perez:
Quote from @John Burtle:
Quote from @Luke Salela:
Hi everyone, wanted to reach out as a new investor looking for advice on what markets (cities) anyone investing in IL would recommend for someone looking to buy multi-unit properties from 2-4 units. I am located in Naperville/Lisle area but open to anywhere in IL. Already have a lender and am a licensed broker in the state. Any feedback is apprenticed thank you. Always looking to network!
There’s some bad stuff coming down the pipes with illinois legislation. Illinois is becoming a very unfriendly tenant state.
here’s one of the newest bills currently on the table,
HB5390=Creates the Tenant Protection Act. Provides that a landlord may increase the rent no more than once every 12 months, by an amount no greater than the percentage change in the Consumer Price Index for the same 12-month period or 3%, whichever is lower. Creates the Residential Rental Registry and requires a landlord to pay a rental registry fee. Requires a landlord to register all dwelling units with the Illinois Housing Development Authority by January 15th of each year. Creates the Right to Counsel Program and directs the Administrative Office of the Illinois Courts to contract with or enter a memorandum of agreement with an administering entity to administer the Right to Counsel Program. Creates the Small Rental Property Owner Repairs and Improvement Fund and provides that money in the Fund shall be used by the Illinois Housing Development Authority to provide financial support in the form of grants, zero-interest loans, or low-interest loans to owners with no more than 12 dwelling units. Provides that a landlord found liable for charging rent in excess of the Act shall pay the prevailing tenant damages. Creates the Tenant Bill of Rights, with provisions governing exclusions, the identification of an owner and agent, a landlord's right of access, prohibited harassment, required notices, a landlord's responsibility to maintain, a tenant's remedies, security deposits, notification of foreclosure actions, and the prohibition of retaliatory conduct by a landlord. Amends the Illinois Income Tax Act. Provides for a rental property capital improvement credit. Amends the Code of Civil Procedure. Adds provisions governing the refusal to renew and the termination of a tenancy for other good cause. Removes a provision regarding the notice to terminate a tenancy for less than a year. Makes other changes. Makes conforming changes in the State Finance Act and the Condominium Property Act. Repeals the Rent Control Preemption Act. Effective immediately.”Wow, when are they supposed to be voting on this? Is this all on 1 bill or did you comprise a few together to summarize?
Thank you for the information
session ends April 8th. They have until then to call it to be voted on. I’m keeping a close eye on it and will share info once I know more.
- Member since 2022 · 3 posts · 2 votes4y
Quote from @Jonathan Klemm:
Hey @Luke Salela - If you can provide a little more context around your goal and strategy that might better help us direct certain areas of Illinois or Chicago to invest in.
Meaning, are you looking for cash flow, appreciation, mix, are you able to househack, how much down payment do you have ready, etc.
I personally love investing in Chicago because there is a ton of old inventory and a wide arrange of price points. Plus in your case, there is an endless amount of 2-4 units down here in Chicago.
Happy to help point you in the right direction with some further clarifications.
Hi, ideally looking for a cash flowing 2-4 unit for my first property in IL. My biggest issue with starting in Chicago is based off what I have seen is the taxes have been higher than most of the western suburb areas. Also, I am able to go FHA so would also be open to going the house hacking route as well. Open to most options but know for the first property I am set on 2-4 units. Can spend up to 350K.
- 4yEudith VacioPro MemberReal Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
Hi @Luke Salela!
Which brokerage are you a part of? I would try to see if any of the agents in your brokerage are investing and pick their minds. I think it largely depends on many factors as @Jonathan Klemm mentioned. I would not put a lot of focus on taxes but more on profitability and ROI. If you need a spreadsheet to analyze deals, I can send you one.
Chicago is a great city to invest in as their are many opportunities to purchase 2-4 units and cashflow / appreciate in value. I heavily focus on the south side of Chicago but I also invest and work with investors in Northwest Indiana if you are ever interested and its not too far from Naperville.
Hope you find what you're looking for!
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes4y
@Luke Salela - I'd definitely lean into the house hacking strategy for your first since it's an option for you. I don't think many will argue that it's probably the path of least resistance and gives you the experience all first-time investors are looking for with less risk.
Taxes are what they are here in Illinois so just factor that in......there are still good deals out there....keep writing offers and one will stick.
Quality Builders4.968 Reviews - 4yGloria N GearBusiness MemberRealtor · Indianapolis IN · Member since 2018 · 464 posts · 339 votes
I lived in Rockford for 15 years and have a couple of friends doing quite well there with both single-family and small multi units.
We personally moved partially because of the policies and taxes of Illinois.
Another idea for you though, if I still lived there, I would probably be looking for rentals right across the border in Wisconsin as well.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.