BP Family - curious to learn of your experience if you've invested in Sauk Village. I have shied away from this in the past but have had success with a few SFHs in Dolton which has caused me to at least explore SV. I understand that appreciation does not exist in this area and have a rough concept of the clientele, but curious to your actual experience if you've owned here. For my own personal goals, adding a few strictly cash flowing properties to the portfolio make sense which is why I'm ok with this strategy to help supplement a larger plan.
I've also heard the annual inspection is tedious and expensive if anyone has experienced this first hand.
The prices were so low after the crash in Sauk Village, that appreciation does exist a bit.
I never like Sauk for the following reasons
1. Their water source was polluted and everyone has cases of bottled water in their homes. That deterred tenants. I don't know if they fixed that, but it cause long term damage to the desirability of that suburb.
2. Real estate taxes can be dysfunctional in the suburbs. They are broke and they will continue to go up faster than inflation. But same problem in Dolton.
3. Sauk Village is poorly located compared to Dolton.
4. I didn't know the city was tough, but you'll have to add that to the equation.
Don't get involved in a new suburb down there unless you scale it up. A one-off property will be a time waster.
And it still is viable, if you can get the properties cheap enough.
Brian has some decent points. Let me add my two cents in....
Water problem was fixed years ago. Water is still not the best. It doesn't stop people from moving in. Most of the really cheap houses are gone. When they come up for sale, they are usually bought right away. Same clientele as Dolton, houses are half the price, and rents are somewhat lower than Dolton. The city doesn't have annual inspection. They are actually pretty decent to deal with, for me anyways. I'm sure everyone has a horror story or two. I actually might be in the beginning stages now of one. When someone moves out and changing ownership you need an inspection. This doesn't stop me from buying out there.
@Tom Shallcross just pop on over to Indiana just over the border, you'll get better laws and taxes out there.. and in most cases better cities to deal with.
It seems like there are a lot of pre-foreclosure opportunities there (almost as many pre-foreclosures as listed properties today on Zillow). If you could BRRRR it and get all of your money back out, having it cashflow a few hundred a month (while having a rental property manager managing it for you), is it still not worth the hassle?
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