New to out of state investment.
Member since 2022 · 3 posts · 1 vote
New to out of state investment.
Most Popular Reply
Rental Property Investor · Chicago, IL · Member since 2019 · 109 posts · 443 votes
4yI have lived in Chicago area my entire life and have been investing in RE for last 5 years with about 80 doors...My advise is FOR GODS SAKE DONT GO TO CHICAGO it sucks in so many ways! Appreciation is not near as high as other areas (I bought a Bonita Springs Florida 2 bedroom home in December of 2020 and sold in April of 2021 and made $95k, I did no work simply appreciation), ( I also bought a lakefront Lake of Ozarks home that I airbnb and make about $1000 a month true profit and it has appreciated over $100k in less than 2 years)
The city of Chicago also has laws and restrictions and building code issues that frankly suck for home owners and investors, you will be in for a lot or red tape if you buy IN the city or the wrong suburb. A good contractor to do the work is EXTREMELY hard to come by in this area.
Finally PROPERTY taxes here are the second worst in the country and NOT getting any better. While you are fixing to flip a property you will pay a fortune in real estate taxes and not have quick appreciation...in somewhere like South Carolina you will pay about 1/3 the taxes while you fix the property and see double the appreciation as well during that same time frame
I invest mostly for cash flow and buy in the FAR west IL area in small towns...no crime, good tenants, far less city oversight in how I run my business and much easier to evict a tenant... in short NEVER BUY ANYTHING IN COOK COUNTY, it takes MONTHS to get a court date to evict a tenant. You can also go to www.heyjackass.com and see the DAILY shooting reports for Chicago, we are really shooting a ton, breaking records every week... although we tend to not kill many people because we are bad shots, we still shoot a ton of people... the city is almost considered a war zone
I am also moving to South Carolina this summer while my new home is being built... this state is bad enough that my family and I had to move! We have watched a ton of people leave mostly due to crime and taxes and a horrible political and union labor structure that cannot be fixed.
If you want to be in the Midwest look toward central IN (places like Carmel IN and surrounding areas) and also Iowa (areas like the quad cities can be good)...but, as another member mentioned, people are heading to the sunshine states...if I was FLIPPING then I would buy in those markets. The younger generations want turnkey on trend homes, most dont know that things can be fixed, so you can likely find beat up properties that the younger buyer wont even consider, fix them on trend with what they want in a home, and then sell them at a nice profit...in the HOT areas the properties that dont sell quick need work, if you can do that work you can make a great profit
11 Replies
- Lender · Texas; Arizona · Member since 2019 · 276 posts · 282 votes4y
If you are looking at investing out of state, why not choose somewhere with better appreciation potential? Like Grant Cardone said, Look at where its sunny. Texas, Florida, Alabama, Georgia, Carolinas, Arizona, Denver...That's where people and businesses are moving.
- Member since 2022 · 3 posts · 1 vote4y
Thank you I will take a look at the places you listed, are you located or do you have any contacts in either one ?
- 4yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
What draws you to Chicago? I know Chicago has some challenges as far as taxes etc and I see some investors have come to indiana
I'm in central indiana.....check it out
- 4yJonathan GreeneBusiness MemberReal Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
If you like Chicago, talk to @Sarita Scherpereel, but I think she will say Chicago may be a bit more advantageous to house hackers than stand-alone investments. Other parts of the midwest will be cheaper, but may not have the same appreciation potential, but there are plenty of options. How did you land on Chicago?
- Rental Property Investor · Chicago, IL · Member since 2019 · 109 posts · 443 votes4y
I have lived in Chicago area my entire life and have been investing in RE for last 5 years with about 80 doors...My advise is FOR GODS SAKE DONT GO TO CHICAGO it sucks in so many ways! Appreciation is not near as high as other areas (I bought a Bonita Springs Florida 2 bedroom home in December of 2020 and sold in April of 2021 and made $95k, I did no work simply appreciation), ( I also bought a lakefront Lake of Ozarks home that I airbnb and make about $1000 a month true profit and it has appreciated over $100k in less than 2 years)
The city of Chicago also has laws and restrictions and building code issues that frankly suck for home owners and investors, you will be in for a lot or red tape if you buy IN the city or the wrong suburb. A good contractor to do the work is EXTREMELY hard to come by in this area.
Finally PROPERTY taxes here are the second worst in the country and NOT getting any better. While you are fixing to flip a property you will pay a fortune in real estate taxes and not have quick appreciation...in somewhere like South Carolina you will pay about 1/3 the taxes while you fix the property and see double the appreciation as well during that same time frame
I invest mostly for cash flow and buy in the FAR west IL area in small towns...no crime, good tenants, far less city oversight in how I run my business and much easier to evict a tenant... in short NEVER BUY ANYTHING IN COOK COUNTY, it takes MONTHS to get a court date to evict a tenant. You can also go to www.heyjackass.com and see the DAILY shooting reports for Chicago, we are really shooting a ton, breaking records every week... although we tend to not kill many people because we are bad shots, we still shoot a ton of people... the city is almost considered a war zone
I am also moving to South Carolina this summer while my new home is being built... this state is bad enough that my family and I had to move! We have watched a ton of people leave mostly due to crime and taxes and a horrible political and union labor structure that cannot be fixed.
If you want to be in the Midwest look toward central IN (places like Carmel IN and surrounding areas) and also Iowa (areas like the quad cities can be good)...but, as another member mentioned, people are heading to the sunshine states...if I was FLIPPING then I would buy in those markets. The younger generations want turnkey on trend homes, most dont know that things can be fixed, so you can likely find beat up properties that the younger buyer wont even consider, fix them on trend with what they want in a home, and then sell them at a nice profit...in the HOT areas the properties that dont sell quick need work, if you can do that work you can make a great profit
- Member since 2022 · 3 posts · 1 vote4y
Quote from @Kerry Noble Jr:
What draws you to Chicago? I know Chicago has some challenges as far as taxes etc and I see some investors have come to indiana
I'm in central indiana.....check it out
They only really thing that drew me to Chicago was the real estate value on the homes onces they were flipped. I also follow some real estate investment groups and I herd about the High Tax issue killing most of the profits. When I started doing the comps it didn’t seem to be much of a good investment.
Quote from @Matt Lyons:
I have lived in Chicago area my entire life and have been investing in RE for last 5 years with about 80 doors...My advise is FOR GODS SAKE DONT GO TO CHICAGO it sucks in so many ways! Appreciation is not near as high as other areas (I bought a Bonita Springs Florida 2 bedroom home in December of 2020 and sold in April of 2021 and made $95k, I did no work simply appreciation), ( I also bought a lakefront Lake of Ozarks home that I airbnb and make about $1000 a month true profit and it has appreciated over $100k in less than 2 years)
The city of Chicago also has laws and restrictions and building code issues that frankly suck for home owners and investors, you will be in for a lot or red tape if you buy IN the city or the wrong suburb. A good contractor to do the work is EXTREMELY hard to come by in this area.
Finally PROPERTY taxes here are the second worst in the country and NOT getting any better. While you are fixing to flip a property you will pay a fortune in real estate taxes and not have quick appreciation...in somewhere like South Carolina you will pay about 1/3 the taxes while you fix the property and see double the appreciation as well during that same time frame
I invest mostly for cash flow and buy in the FAR west IL area in small towns...no crime, good tenants, far less city oversight in how I run my business and much easier to evict a tenant... in short NEVER BUY ANYTHING IN COOK COUNTY, it takes MONTHS to get a court date to evict a tenant. You can also go to www.heyjackass.com and see the DAILY shooting reports for Chicago, we are really shooting a ton, breaking records every week... although we tend to not kill many people because we are bad shots, we still shoot a ton of people... the city is almost considered a war zone
I am also moving to South Carolina this summer while my new home is being built... this state is bad enough that my family and I had to move! We have watched a ton of people leave mostly due to crime and taxes and a horrible political and union labor structure that cannot be fixed.
If you want to be in the Midwest look toward central IN (places like Carmel IN and surrounding areas) and also Iowa (areas like the quad cities can be good)...but, as another member mentioned, people are heading to the sunshine states...if I was FLIPPING then I would buy in those markets. The younger generations want turnkey on trend homes, most dont know that things can be fixed, so you can likely find beat up properties that the younger buyer wont even consider, fix them on trend with what they want in a home, and then sell them at a nice profit...in the HOT areas the properties that dont sell quick need work, if you can do that work you can make a great profit
I have to agree. Chicago is a terrible place to invest. Don't do it. But if you want to sell any of your 80 doors would you mind letting me know? Thanks.
I do agree with a lot of your points, all kidding aside. And I'm serious that I'd look at anything you want to sell because I still think Chicago is a very desireable place to live. There's a reason developers are still building thousands of luxury apartments. There's strong demand and good wages. They need to get crime under control and we have a "get out of jail free" state's attorney in Foxx. It's a problem.
I do agree with you about rural areas. I think they are an untapped market.
But as a out of state investor I think Chicago's probably a bad idea.
- Specialist · Southlake, TX · Member since 2021 · 213 posts · 157 votes4y
When investing out of state, I would say that the selecting the team you work with is equally important as selecting the market you invest in. Best of luck with all your investing!
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes4y
Quote from @Ackeem Hamlet:
Hey
I am looking into Chicago as an out state investor from NYC, I have some ideas but i would love some help on. great programs i could use for comps. Really looking flips and not buying and holding yet. i would love to chat with someone who has experience and feedback. Thank you in advance.
My partner is from NYC. Regarding programs for comps. Here are your choices:
1. Hire a realtor- but only do so if you're really ready to start buying.
2. When we invested outside of our area we would use Redfin to look for comparables. There are other own line tools where you can manually look for comparables. Never, never, never use zillow Z-Estimates
3. if you're willing to pay a fee consider reiblackbook.com. We use their services to run our back office and sometimes use their comparables. Their system pulls from public records. - Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes4y
@Ackeem Hamlet - I love Chicago for the amount of old inventory needing renovations, the range of price points, and the number of multifamily properties.
Happy to help you get going in the windy city if is still something you are pursuing.
Quality Builders4.968 Reviews - 4yEudith VacioPro MemberReal Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
Hey @Ackeem Hamlet - were you able to glean on some knowledge in Chicago or did you change your mind?
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