What areas do you recommend in Chicago area for 3 or 4 flats ?

Question

I am about to do a cash refinance on my current multi unit. So, now I am seriously considering a 3 or 4 flat to purchase. Purchase price would have to be  up to 450k.  2 flat would not make sense, since it wouldn't really bring income, I would have tonpay additional 500 a month for that refinance. So I think 3 or 4 flat would work. I do see some around 450 in Belmont Cragin, what other leaders are great ?

John Warren · Answer

@Alex Tokmazeyskiy the real question you should be asking is what type of risk you are willing to take, and how will a four unit fit into your life/management systems. Are you going to self manage the property? Areas like Belmont Craigin or Portage Park will be relatively easy to manage. A lot of the other areas people have thrown out will be more hands on, even though it may be easier to find a higher cap rate.

Most areas in Chicago barely give you a 4 or 5 cap today based on current rents, and it is very hard to find things that will produce higher than an 8 cap unless you are doing some heavy rehab work.

Crystal Smith · Answer

Portage Park, Belmont Craigin, West Humboldt Park, Austin, East Garfield Park, North Lawndale, Woodlawn, south shore, chatham, south chicago, Brighton Park, Greater Grand Crossing,

Sean McKee · Answer

@Alex Tokmazeyskiy- I'd also through Little Village out there.

Salomon Lino · Answer

I have a four unit in East village coming back on the market. Consist of a brick three flat in the front and the coach house in the rear.  I did advertise it a month ago and bigger pockets I'll post a link a little later

Alex Tokmazeyskiy · Answer

I am looking for at least 10%

Michael K. · Answer

What sort of cap rate are you aiming for?

Michael K. · Answer

I like the South West corridor around I-55, This would be Little Village/South Lawndale, West Part of Pilsen, McKinley Park, Brighton Park. On the North Side along 90/94 I would look at Portage Park, Jefferson Park, Albany Park/Mayfair. You can most likely find building selling for around 100-150k/unit in these areas

Paul De Luca · Answer

@Alex Tokmazeyskiy

Portage Park, McKinley Park, Brighton Park, Bridgeport, Marshall Square, and Hermosa.

What areas do you recommend in Chicago area for 3 or 4 flats ?

Most Popular Reply