When will Garfield park in Chicago start seeing gentrification?

Question

I am new to bigger pockets and own 5 condos(2 in Lake View, 2 in east Rogers Park, 1 in uptown. I also own a 3 flat in Mayfair park. I am receiving a pretty good cash flow from all of these properties. (Associations are a pain to deal with), but didn't make make huge money on any of them being the neighborhoods already were fairly nice when I bought them.

I am looking to put down 30-40k in a neighborhood that could possibly gentrify with in the next 5 years. I have been looking at east Garfield park. Will drive through with in the next few days to get a better idea of the neighborhood.

My question to the forum members is

How likely is east Garfield park to gentrify and when?

How safe is it for a 40 year old white male who will be doing the managing  and repairs himself. I have a concealed carry but don't want to have to use it.

Any one receiving a good cash flow from there?

Thanks every one

John

Crystal Smith · Answer

Tons of investors who know how to manage that type of risk are making $ in Garfield.

Sarah Ziehr · Answer

What kind of NOI are you looking for?

John Anderson · Answer

The prices in Avondale are already high. I own 5 condos and a 3 flat that I bought all in fairly nice areas. I am receiving a pretty nice cash flow being 6 are paid off. ( would not recommend condos for investors unless you buy it dirt cheap)

That being said I would like to hit it big and I missed many opportunities to do it in the early 2000's, 6 flats on division and damen  at the time we're going for 180k. 3 flat grey stones in Logan square in turn the key condition we're going for the same. I looked at these properties and passed them up and went the safe route.

If I would have bought the building on division and damen it would be worth 1 million plus probably and bring in a profit of 10k per month. I would love to invest in an area like this.

Sarah Ziehr · Answer

I would look at Avondale, I think that area has a much better chance of seeing a Starbucks in the next couple of years.

Matthew Olszak · Answer

I second Crystal on this. There is just no reason for the neighborhood to gentrify anytime soon. There isn't much to bring in outsiders such as venues and restaurants. Additionally, it is separated from the near west side by train track viaducts and a thin industrial tract, which somewhat prevents the 'overflow' from other areas.  I see the area improving, but not gentrifying.

That however doesn't make it a bad area to invest depending on your goals. People have to live somewhere, and there is a decent amount of newer construction compared to further west. As Crystal said, your biggest risk will be when you aren't around. Case-in-point: I showed a foreclosed property last week in the neighborhood that was totally renovated in the past few years. Second and third floors were beautiful. First floor was a disaster - full of a squatter's stuff, basement was full of mold and flooded from the hot water heaters being ripped out. They were getting in from the back unlocked window.

If you do invest there, I'd recommend doing only the necessary to maximize your Section 8 rents. Others here will certainly have better experience as far as rentals. For flipping, be careful you don't go too overboard, the comps will kill you, and is why I believe we see so many foreclosures that were recently rehabbed and end up unsold and gutted.

Crystal Smith · Answer

I just looked @ the post again and realised I said "pull the trigger" to someone that open conceals carries.

Just having some fun

John Anderson · Answer

Thanks for the great advice Crystal Smith

When will Garfield park in Chicago start seeing gentrification?

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