Chicago logan square rental market

[Alex L.]

Seeing wide spread rent reductions while 2-3 units buildings are selling at $600-700k. What’s the catch? 3bed/1bed only going for $1800/month and 2bed/1bed is around $1400/month…

[Jonathan Klemm]

@Alex L. - What exactly about the numbers is puzzling to you?  Who is paying so much for a barely cash-flowing property in great areas?  NW Chicago properties just don't cash flow well, it's just the way it is.

I'd say maybe someone like yourself.  Someone with a solid W2 job who decided they'd rather purchase than pay rent.  They are okay paying "1/2 normal rent" that now goes towards their own mortgage (and then have it cash flow better when they move out).  Now.... in theory, they used a low down payment loan, have an appreciating asset, in a great neighborhood that they love (hopefully), and have awesome tax benefits.