INVESTING IN CHICAGO WESTERN SUBURBS (DUPAGE COUNTY)

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INVESTING IN CHICAGO WESTERN SUBURBS (DUPAGE COUNTY)

Paul Brown
Investor · Member since 2020 · 26 posts · 52 votes

Hey Guys, 

I'm newer to Bigger Pockets. I've listened to some webinars and podcasts and I'm interested in investing in the western suburbs of Chicago Illinois in Dupage County. Specifically the areas of Lombard 60148 and Villa Park 60181. Over the last 6-8 months I've looked at all the MLS deals in this market and my analysis is that it is undervalued compared to surrounding areas such as Elmhurst 60126, Glen Ellyn 60137, Wheaton 60187, Downers Grove 60515. I live in Elmhurst and also own a local moving company (Two Men And A Truck) so I talk to a lot of people about why they are moving and the trend seems to be that they are priced out of the more expensive surrounding areas and so they are moving to Lombard and Villa Park. Both cities seem to have good schools, lower taxes and still close enough to Chicago for easy access in and out for work and entertainment. In particular, it seems like a lot of younger people who grew up in the more expensive surrounding areas that I mentioned are moving back to this area after college and simply can't afford to buy or rent a home there.

I am just finishing up the rehab on a buy and hold sigle family property (4 bed 2 bath) in Lombard and am happy with the financials and now looking for more projects. I currently own some industrial properties but am fairly new to residential. Can you guys give me any feedback on my analysis? Any help would be greatly appreciated.

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Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
5y

@Paul Brown - Welcome to the BP community!  I love those areas as well Lombard and Villa Park are great places to invest for a lot of the reasons you mentioned.  If you are looking to partner up on any upcoming deals definitely reach out, love connecting with like minded

@Michael J Scanlon would be a great person to connect with.

[email protected]
Quality Builders4.966 Reviews
WebsiteView Page
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  • Patrice Boenzi
    Real Estate Agent · Geneva, IL · Member since 2015 · 403 posts · 172 votes
    5y

    @Paul Brown I am a local Realtor and work in the western suburbs. School districts drives prices. Elmhurst is a great location, we did our first flip in Elmhurst. I see younger people entering the market due to the low-interest rates. Inventory is so low, prices are crazy right now. If you would like to connect, let me kow.

    1Reply
  • Paul Brown
    OP
    Investor · Member since 2020 · 26 posts · 52 votes
    5y

    Thanks Patrice. I agree with the schools. I bought in the area that has the best grade school (Hammerschmidt) thinking that would be a good selling feature. Do you think clients look at either grade, middle or high schools as more important than the others? Would love to hear what your thoughts are on that. Also, I will hang onto your info for upcoming projects.

    0Reply
  • Sam J MrofczaPro Member
    Villa Park, IL · Member since 2015 · 15 posts · 9 votes
    5y

    @Paul Brown

    I grew up in Lombard and now I live in VP, also a Broker, but you can tell that from my signature.  

    I love these two towns, I don't think the margins are asgreat as you describe but all the other points you make are very valid. I just put a duplex in VP under contact last month that will be around a 15% CoC return on day one, as it has tenants in place. South Villa Park especially has large lots, and 50 60s era homes that are ripe for rehab, and in some cases tear down. In fact that's exactly what my brother and I did a few years ago, purchased a SFH on a large lot and subdivided to build two homes.

    A word of caution, the Village of VP does seem to have some type of aversion to residential development.  I have a horror story that is much to long for a post, but the bottom line is just make sure you ask a lot of questions and get them engaged early on.  

    In any case I think you picked two great towns to focus on.  Happy to talk anytime, don't hesitate.  

    1Reply
  • Patrice Boenzi
    Real Estate Agent · Geneva, IL · Member since 2015 · 403 posts · 172 votes
    5y

    @Paul Brown when I do comps for my sellers I always use the elementary school. I was trained that the appraiser will pull from the elementary school, but I always do not see it done like that. Hammerschmidt is a great school district and I have seen property pull some higher prices for the luxury of the school. I do know the Lombard locals have strong feelings about the schools and what side of town you are on.  

    1Reply
  • Paul Brown
    OP
    Investor · Member since 2020 · 26 posts · 52 votes
    5y

    @Sam J Mrofcza

    I appreciate the feedback Sam. Sounds like you know the area well.  I really like the Villa Park area south of St. Charles, especially around the Prairie Path. I may want to hear your horror story before starting any projects there to possibly dodge some headaches with the city of VP. If it's ok with you I might reach out to you in the future.

    0Reply
  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Paul Brown - Welcome to the BP community!  I love those areas as well Lombard and Villa Park are great places to invest for a lot of the reasons you mentioned.  If you are looking to partner up on any upcoming deals definitely reach out, love connecting with like minded

    @Michael J Scanlon would be a great person to connect with.

    [email protected]
    Quality Builders4.966 Reviews
    WebsiteView Page
    2Reply
  • Michael J Scanlon
    Realtor · Chicago, IL · Member since 2019 · 222 posts · 153 votes
    5y

    Thanks @Jonathan Klemm


    @Paul Brown I work that area daily with investors and I know it very well. Happy to help if you need anything. 

    1Reply
  • David Sailer
    Real Estate Agent · Hinsdale, IL · Member since 2020 · 5 posts · 0 votes
    5y

    Paul - sent you a connection. There is pocket in between Hinsdale and CH that is a great single family home investor area. Happy to chat offline. My wife and I just moved here actually from the city and it's more affordable than Hinsdale, Western Springs, Lagrange, etc. Single family rental $350-400k with rents going for $2500-2700 on 900 SF. We own our home, but are in the process of looking at investment properties.

    0Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    5y

    @Paul Brown welcome to BP!

    We have a few SFH rentals in Lombard, and so far it has been great. Like downers grove, it's easily accessible by several highways, and it's not far from Chicago. More importantly, supply for single family rentals are very limited, creating a good demand from renters.

    As far as I know, there is no rental license or inspections required yet.

    Most of the housing stock are older, and some parts are in flood zones, so make sure you do your due diligence well. 

    1Reply
  • Paul Brown
    OP
    Investor · Member since 2020 · 26 posts · 52 votes
    5y

    David Sailer

    Thanks for the info. I'd like to hear more. 

    0Reply
  • Paul Brown
    OP
    Investor · Member since 2020 · 26 posts · 52 votes
    5y

    @Chris T.

    Thanks Chris. There wasn't much rental data since not many SFH rentals in that area. I had my realtor pull rental comps and from what I could see a 4 bedroom 2 bath goes for about $2400 to $2800. I am looking for $2600 since we are doing some rehab upgrades (Kitchen/Bath etc) and also it is in Hammerschmidt elementary school district. It also is a couple blocks from Lombard Commons park and close to the train...but just far enough so you can't hear it. Does that seem in line with what you have seen in Lombard rental market?

    0Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    5y

    @Paul Brown The price points for the Hammerschmidt school district are higher. I rented one (fixer upper) by the Madison Meadow Athletic center for $1700 about 3 years ago, but it needed a lot of work. 3 Bed, 1.5 bath.

    $2600 seems in line with the market especially it's newly rehabbed. When will you be listing it?

    My other properties are in Manor Hill and Park View Elementary district.

    0Reply
  • Paul Brown
    OP
    Investor · Member since 2020 · 26 posts · 52 votes
    5y

    Shooting for March 1 or April 1. 

    0Reply
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