Any Experience/Opinion on Southern or Central Illinois?

Question

Picked up my first property last fall.  C-class in a small town (Dwight) about 30 minutes south of Joliet.  I've got $60k in and planning to rent for $800 per month.   I'll be financing in the next 30 days to pull the cash back out for future opportunities (about $30k for the next deal).

I feel the biggest opportunity in Illinois exists in Chicago.  Unfortunately I don't feel I have the $$$ to pick one up.

Central and Southern Illinois appear to be hot rental communities (many more renting than owning).  The cost per sq ft is quite a bit lower than Northern IL/Chicago.  Cashflows appear to work.  My concern is how to find a buyer when it is time for the exit.  Also I can tell you it was pulling teeth to find someone to work on the home I've purchased (had several connections in the suburbs make a drive down as a favor).  I have family in both communities that I can rely on for oversight.

Anyone have experience in these or similar communities?

Aaron Lands · Answer

I am quite a bit further south of you, about 35 miles east of St. Louis.  I've purchased several properties, all with a positive cash flow.  Scott AFB is only a few miles away so I do have quite a few military tenants.  I've tried flipping older properties, but when I figure my costs, time, etc., there isn't a lot of profit to be had.  I've had better luck with newer properties that have been on the market awhile.  Using baseball terminology, I don't hit many home runs, but the singles and doubles add up.

Melissa Kirchhoff · Answer

@Bob Crane - Hey, want to buy more in Dwight? ;-)

I think what you're saying is very valid. I think there's some great stuff out this way that people miss but hard to sell when it's time. However, rentals, if you have the right team can be amazing. I know people with nightmare tenants, but I also know people who are insanely picky and have amazing tenants and cash flow like you wouldn't believe!

Also, here in Ottawa we've had a boom of newer investors (mostly flippers) jumping in because it's so much cheaper. Yet, they don't understand the market *at all* and really struggle. It's very interesting to observe it all and learn from someone else's experience and not my own dollars!

John Strong · Answer

surprisingly no more than a new home. I live in a home we built 25 years ago. I usually have to do some large repair at some point in the older home. Roof on one but expected that. Sewer line on another wow that was costly. New heater a/c on another. But overall, day to day, no not much difference. I do not even care about the age almost the older the better craftsmanship. You get size in exchange for the open concept and then bathrooms and kitchens were not important back then and you can tell.

Bob Crane · Answer

@John Strong - thanks for the detailed reply.  How does repairs on the older homes impact you?  Is there a home that is too old?

I may reach out for some contractor contacts.  Finding anyone consistent in Dwight has been a struggle.

Any Experience/Opinion on Southern or Central Illinois?

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