Los Angeles, CA · Member since 2017 · 21 posts · 2 votes
Good evening dear members!
I am fairly new to REI and looking into Melrose Park as a potential investment area for a multi family. It sounds to be much safer compares to Maywood and Bellwood neighborhoods where they still have few Latino gangs (from conversation with Police officer). It also seems to be C class area from what i can see from here.
Please correct me if i wrong and i would appreciate any info regarding this area as your home or an investment area.
I live in Melrose Park. It’s a good area to invest. But I have seen the prices soar. I have not found anything at a good price. Lost of “ok “ deals. But if u can find the asset at a price that makes sense I say go for it.
Melrose Park is a working class area and is wealthier than Maywood and Bellwood. You are from Arizona, so make sure you have good management contacts here in Illinois.
I live in Melrose Park. It’s a good area to invest. But I have seen the prices soar. I have not found anything at a good price. Lost of “ok “ deals. But if u can find the asset at a price that makes sense I say go for it.
Sergii, as the posters above said, it is an OK area. Prices are rising throughout much of Chicagoland. I manage properties for other investors (and myself) from far south suburbs to far north suburbs. Would be happy to share thoughts on anything. Why are you focused on Melrose Park? What kind of numbers are you looking for? Adam
Hey @Adam St James, and thanks for response! I chose Melrose Park just because i found a good deal in a decent area. I'm open to go different location but as long as it is at list decent C class. I'm kind of scared of going far south(low demand and a lots of gangs depending on the area), or north(far away from all would also bring a low demand).
Could you please share your experience on location to invest?
Looks like a decent place, but I'd have to run comps to see how it really stacks up (I'm a Realtor). Both units are vacant, no rent coming in. What were the rents you were expecting?
$175K is a lot of money. For that kind of money ou could buy and rehab two or three single family homes in some of the 'burbs such as Oak Lawn, Midlothian, Country Club Hills, Homewood, Bolingbrook, Romeoville, etc, and end up with $300 to $500 per month cash flow...
the south side of Chicago has very nice areas as well. Oak lawn, Beverly, Orland, etc......melrose park is a decent area but as everyone mentioned prices are rising fast and a lot of properties are overpriced right now. Melrose park isn't that far from Oak Park which is a high end area but close to Austin which is still being gentrified heavy. I was just over there recently and for any out of state investor I would recommend you use a property manager. If your looking for rentals I'm sure you could get 10-11% in melrose park, pay close attention to the taxes because they would kill the CCR.hopefukly prices come down soon. The market correction will balance everything out
@Sergii Khromchenko , the building is already under contract. What constitutes a good deal to you? Is it cash flow, expanding neighborhoods where your equity will grow fast or are you looking for flips?
Looks like a decent place, but I'd have to run comps to see how it really stacks up (I'm a Realtor). Both units are vacant, no rent coming in. What were the rents you were expecting?
$175K is a lot of money. For that kind of money ou could buy and rehab two or three single family homes in some of the 'burbs such as Oak Lawn, Midlothian, Country Club Hills, Homewood, Bolingbrook, Romeoville, etc, and end up with $300 to $500 per month cash flow...
In that area i was expecting at list 1100$ for 2 beds and 1200$ for 3 beds.
Yeah.... that is true! I am just more familiar with either North or west side of Chicago, south was always a side that tried to avoid. Plus demand would be much lower on south. Please correct me if i'm wrong!
the south side of Chicago has very nice areas as well. Oak lawn, Beverly, Orland, etc......melrose park is a decent area but as everyone mentioned prices are rising fast and a lot of properties are overpriced right now. Melrose park isn't that far from Oak Park which is a high end area but close to Austin which is still being gentrified heavy. I was just over there recently and for any out of state investor I would recommend you use a property manager. If your looking for rentals I'm sure you could get 10-11% in melrose park, pay close attention to the taxes because they would kill the CCR.hopefukly prices come down soon. The market correction will balance everything out
Yeah, as i just mention in a previous comment i'm not familiar with those areas yet. Have you invest there? Is there a good demand?
Yes, PM is a must in my case. Do you manage your properties your self since you are there? or do you use one as well?
And yes again, i'm expecting correction to hit soon as well, but i just can't wait since it might happen in 2018, or 2019, or 2020, or later? :)
@Sergii Khromchenko , the building is already under contract. What constitutes a good deal to you? Is it cash flow, expanding neighborhoods where your equity will grow fast or are you looking for flips?
Hi Lumi, A cash flow is the most important factor for me. But i also look for a safe B-C area.
Yes, Chicago has a plethora of decent to good neighborhoods....
The demand on the south side can be lower in certain parts. Your right. But you can say the same for the west side. It's bad areas here and there on all sides. Minus the north side. The north side is good for flipping IMO, not good for cash flowing rentals. I honestly think the south side has more overall building potential because the north side is so well developed. The west side has a few good decent parts. The opportunity is on the south side!.....yea sure i can send you a PM