Investor · Itasca, IL · Member since 2016 · 22 posts · 2 votes
Hello BP!
I was hoping to start a discussion about the Chicago suburbs in which other investors have had the most success. I'm evaluating properties to purchase and rent out. Some guidance as to which areas to focus on would be of huge help.
I have 1 in bloomingdale and 1 in carol stream, and they both rent easily. Instead of looking at specific suburbs, maybe you should look at the following factors
1. The numbers make sense (double check property taxes)
2. The schools are decent / neighborhood is safe. You can't cash flow in A areas. Most likely B/C+ areas
3. Your property is up to par and presents well. 3/2 with a yard is very attractive.
There are some flood zones in Des Plaines, be careful as you may need to buy flood insurance. Which will throw off your numbers. I consider Des Plaines to be an A/B+ area. So unless you can get a significant discount and/or put down a big down payment for a loan or cash, it's tough to have positive cash flow.
Hanover Park, Elgin, Barlett, Addison, Glendale heights have lower price points of entry for SFH. Of course, there are pockets in Wheeling, Arlington heights, Des Plaines, Lombard, Elk Grove Village, Bloomingdale etc which you can find cash flow positive rentals but have to look a little harder.
Marqueen Robinson I live in the NW suburbs so around there would be great but I'm also open to hearing about any of the suburbs in which you've had success for rental properties.
I haven't quite gained a property just yet but as of now Park Forest is a buyer and seller market as of now this summer there were many houses on the market so I would start there if you going south
@Bradley Calvin From some of the recent research Ive done, Ive found Park Ridge is a hot area. Not sure but I would assume that means Niles is a popular as well. Ive also spoken to quite a few people who are investing with success in DuPage County.
I'm hoping to connect with investors who are in search of single family rentals in Dupage County. I'm currently working on a potential deal in the city of West Chicago that seems like it could be ideal for a buy and hold investor.
Matt Boyle - thank you for sharing buddy. I'm curious to know In which towns in the NW suburbs they've had success.
It's not in DuPage but an agent I spoke with said that Des Plaines is supposed to be a good area to own rental properties.
I have 1 in bloomingdale and 1 in carol stream, and they both rent easily. Instead of looking at specific suburbs, maybe you should look at the following factors
1. The numbers make sense (double check property taxes)
2. The schools are decent / neighborhood is safe. You can't cash flow in A areas. Most likely B/C+ areas
3. Your property is up to par and presents well. 3/2 with a yard is very attractive.
There are some flood zones in Des Plaines, be careful as you may need to buy flood insurance. Which will throw off your numbers. I consider Des Plaines to be an A/B+ area. So unless you can get a significant discount and/or put down a big down payment for a loan or cash, it's tough to have positive cash flow.
Hanover Park, Elgin, Barlett, Addison, Glendale heights have lower price points of entry for SFH. Of course, there are pockets in Wheeling, Arlington heights, Des Plaines, Lombard, Elk Grove Village, Bloomingdale etc which you can find cash flow positive rentals but have to look a little harder.
Definitely take the advice from @Chris T. on checking property taxes. THIS IS EXTREMELY IMPORTANT! I just closed on a 4-unit in Lake County and the taxes are $14,700!
Buyer beware! However, as long as you purchaser RIGHT you will always come out on top!
I like to focus on C grade neighborhoods, B class if the price is right. Renting to blue collar hard-working tenants is very enjoyable....... As long as you screen them!
Ouch! $14,700 per year. Hate to bash our state but property taxes are a killer.
I have seen some properties on the southwest/south that has ridiculous high taxes as well. Country Club Hills is a good example. Over $7000 taxes per year for a $107,900 property. Full disclaimer, I am not familiar with these areas so I'm not sure what the comps and/or rents are