4 unit in Chicago South Suburbs- Oak Forest, Illinois

[Jeffrey Trayes]

My brother and I own a few single family rentals in the south suburbs. We're looking at a 4-unit- 1bd,1ba. Trying to run numbers to see if the juice is worth the squeeze. I use property management for my Florida properties but have not with our Chicagoland properties. Trying to run rental comps and not seeing much inventory to compare for Oak Forest. Thinking they could rent for $1350 or so? Does Oak Forest impose a 'crime free' fee? city inspection fee? Wondering if there is still room for appreciation on property value and rents or is it holding stable now?

Also, looking for a lender. Rates are looking at about 7.75, but in California, Bank of the West can get 5.25 even for investment properties.

Thanks for your time! Let me know if you have time to chat.

[Crystal Smith]

Quote from @Jeffrey Trayes:

My brother and I own a few single family rentals in the south suburbs. We're looking at a 4-unit- 1bd,1ba. Trying to run numbers to see if the juice is worth the squeeze. I use property management for my Florida properties but have not with our Chicagoland properties. Trying to run rental comps and not seeing much inventory to compare for Oak Forest. Thinking they could rent for $1350 or so? Does Oak Forest impose a 'crime free' fee? city inspection fee? Wondering if there is still room for appreciation on property value and rents or is it holding stable now?

Also, looking for a lender. Rates are looking at about 7.75, but in California, Bank of the West can get 5.25 even for investment properties.

Thanks for your time! Let me know if you have time to chat.

Oak Forest passed a crime-free multifamily ordinance a while back. Here's a link to Oak Forest website which I'm sure you've already researched. You should find all your answers there: https://www.oak-forest.org/144...

There's very little inventory of small multifamilies in Oak Forest. I would approach it as a cash flow play, not an appreciation play.  
 
Regarding whether or not you can get $1350 for a one-bedroom. Try the bigger pockets Rental Estimator: https://www.biggerpockets.com/... You may have to upgrade your membership for access to it.  Over the last 6 months, 2 1 bedrooms have been rented in Oak Forest for an average of $1050.  A condo unit was rented for $1350.  These are apartments that were listed with realtors.  The current one-bedroom on the market listed with Realtors are only listed for $850. I'm not sure where the Bigger Pockets Rent estimator is pulling data from but it shows a range of $954 to $1700 w/ a low confidence of $1450.  I just put in the zip code.  My assessment- getting $1350 is pushing it.

Regarding lending- Try Renovo or the Community Investment Corp (CIC)