Rental Property Investor · Chicago, IL · Member since 2016 · 98 posts · 52 votes
The past few weeks have left me very pessimistic. I'm feeling that the good times are very likely winding down for finding good deals in Chicago. Seems that lots of properties are overpriced and good deals are wrapped up in multiple offers within several days of hitting the market. I am preparing to close on a flip, but am feeling like my goal of picking up 5 more units (good deals) this year will be tough. What are you seeing/experiencing in the Chicagoland market?
Fair to say you've not looked at the South side of Chicago? There absolutely are deals to be made in neighborhoods which are nice, and are fairly obviously going to appreciate in a few years. As an idea, anything around Jackson Park, where the Obama Presidential Library will be put. You can still buy property cheaply in that area to fix up and flip, or hold onto for appreciation and cash flow. I literally just bought a two flat in that neighborhood this week. I guess it depends on what type of investing you're looking for and how much you want to hustle to do it.
Jonathan Davis how's it going. Actually try looking at northwest Indiana. It's very close to chicago as well. We have put investors in houses rather a flip or a rental at 100k that's plus rehab and all other cost. There are some nice houses and areas in northwest Indiana. If you want more info and want me to explain further please send me a PM. Don't hesitate to ask for help.
I agree with Elbert. Northwest Indiana is only about 40 minutes from Chicago and the taxes are dramatically lower than Illinois. So are the home prices. However, the rental prices are just slightly lower. I live out here and do a lot of business here too. Be careful though. I would stay away from Gary. You can purchase properties for peanuts, but it's extremely difficult to find quality tenants. Plus the crime rate is very high. Best of luck to you.
@Jonathan Davis I would stay away from downstate. IL is in a bit of a pickle as far as it's finances, which is an understatement. Chicago and upstate (Lake County) are keeping the state alive. Most jobs downstate are manufacturing/blue collar which is hurting right now.
Indiana is a good alternative as well. If you believe in Chicago (and can afford it!), try to invest around the area. Maybe start in Indiana with a good deal, get leverage + capital and come to Chicago afterwards?
Regardless, the important thing is to get started. Good luck!
@Scott Steffek and @Sam Amir thanks so much for the information. I agree that I would probably not go downstate at least for the time being. Indiana is a good thought but my first priority is to ensure I have enough money saved up to do so.