Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
Hey BP,
I'm looking to house hack a multifamily property in the $250-$350K range in Chicago. I'm currently looking mostly in the northern neighborhoods like Humboldt Park, but am not opposed to being on the South Side or even as far west as Oak/Forest Park.
What neighborhoods do you think are best suited for this kind of investment that haven't already been completely gentrified? I want to buy-and-hold the property and would like to factor in the 10+ year future of the location. Any insight is appreciated. Thanks!
Investor · Chicago, IL · Member since 2015 · 33 posts · 17 votes
8y
You should be able to house hack around the upper part of your price range in neighborhoods like Old Irving or Portage Park, possibly fixer upper opportunities in Jefferson Park. These neighborhood have good transit in place, always a plus.
Burbs- Skokie has nice two and three flats, as does Oak Park and Forest Park like you suggested. River Forest is another. Bridgeport has great opportunities and good proximity to transit also. Good luck.
Chicago, IL · Member since 2018 · 7 posts · 4 votes
8y
Good luck at that price point. I live in the slightly more gentrified section of HP (one block north of the park/border Logan Sq.) - and SFH are more like 500k already. You're probably going to have to be pretty far west to find anything multifamily in that price point - I think that ship sailed this neighborhood 10 yrs ago. But, again - good luck, hope you find a good fit! Let me know if I can help answer questions about the area.
Vendor · Chicago, IL · Member since 2017 · 6 posts · 6 votes
8y
Look south... that’s the next 20yrs for Chicago. I’d suggest Pilsen or Bridgeport right now. Could do other areas further south depending on how long you’re looking out. For that price point you’ll prob be looking at deeper rehab.
Downers Grove, IL · Member since 2017 · 366 posts · 165 votes
8y
Very few multi's in OP or Forest PK, a lot more in Berwyn and Cicero. Bigger risk and bigger rewards in both. Chicago Clearing is another area to look without going to far South or East. Multi's are hot now and a lot of people are over paying for garbage. Just a thought you might find better deals buying to separate 1/2 duplexes in the same building.
Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
8y
Ariana: No problem! Please feel free to keep in touch to bounce ideas off each other as we look for a house hack.
Nick: That's interesting to hear. I appreciate you letting me know! I mostly just used HP as an example of the type of area I'm looking at -- I really don't have a preference as long as it's a good investment and reasonably close to the loop. I'll definitely reach out if I have more questions while I'm searching.
Wes: I appreciate the advice! Those are both neighborhoods I'm looking at in the South. It's good to hear that you also think think they have a lot of future potential. I'm looking to do a decent amount of rehab -- but not a complete gutting of a house. I don't think I have the experience or time to do that just yet.
Robert: I never thought about separating duplexes in the same building -- that's a great idea. Thanks for the insight on the locations, I haven't thought to consider those areas but I'll look into it.
Ariana: No problem! Please feel free to keep in touch to bounce ideas off each other as we look for a house hack.
Nick: That's interesting to hear. I appreciate you letting me know! I mostly just used HP as an example of the type of area I'm looking at -- I really don't have a preference as long as it's a good investment and reasonably close to the loop. I'll definitely reach out if I have more questions while I'm searching.
Wes: I appreciate the advice! Those are both neighborhoods I'm looking at in the South. It's good to hear that you also think think they have a lot of future potential. I'm looking to do a decent amount of rehab -- but not a complete gutting of a house. I don't think I have the experience or time to do that just yet.
Robert: I never thought about separating duplexes in the same building -- that's a great idea. Thanks for the insight on the locations, I haven't thought to consider those areas but I'll look into it.
All the best. I am a new out of town investor, Brooklyn, and looking for long term investing. From what I can see from my research and independent Chicagoan individuals there are great opportunities for the truly long term buy and hold strategy. Ask some of these same people would they have purchased Harlem NYC 10 years ago. I see parts of Chicago will have great long term growth potential. Also, you are riding a trend back to the cities and away from the burbs. Another city experiencing that as well in Philadelphia.
Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
8y
Thanks for reaching out Calvin. I think you're right. The education and income levels in Chicago appear to be trending upward, which is what I would think to be a good sign for long-term growth. It's interesting to hear an outside point of view.
Part-Time Investor · Chicago, IL · Member since 2015 · 25 posts · 6 votes
8y
I can +1 for the Clearing area. I'm writing this from a 3-unit that I bought/living in for the past 2.5 years. Plus it was in the price range given. :)
Investor · Chicago, IL · Member since 2015 · 33 posts · 17 votes
8y
You should be able to house hack around the upper part of your price range in neighborhoods like Old Irving or Portage Park, possibly fixer upper opportunities in Jefferson Park. These neighborhood have good transit in place, always a plus.
Burbs- Skokie has nice two and three flats, as does Oak Park and Forest Park like you suggested. River Forest is another. Bridgeport has great opportunities and good proximity to transit also. Good luck.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
8y
@Alex Ferraro I do a lot of business in Forest Park and Berwyn. Oak Park can be pretty tough if you are looking at the investment side. The numbers almost never work due to the taxes. Forest Park and Berwyn can both work a lot better. PM me if you want to check out properties in the area. There is not as much on the market as there was last year, but there are still solid deals out there.
"I can +1 for the Clearing area. I'm writing this from a 3-unit that I bought/living in for the past 2.5 years. Plus it was in the price range given. :)"
Interesting, I am sort of a fan of Garfield Ridge, and made several offers on properties in Clearing as well. I like Weber's a little too much, maybe just as well nothing materialized.
Chicago, IL · Member since 2015 · 97 posts · 55 votes
8y
Melissa Rios said above already, but the Portage Park / Jefferson Park area is working really well for Kaitlyn Cowan and I. We are beating all our expectations. The area keeps adding new restaurants, breweries, and infrastructure projects (huge repair/pavement on Cicero in last week). When they finalize the Sears/Six Corners projects the area should pop.
Happy to share my financials for a purchase in August 2017 via PM.
-Kenny
Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
8y
Thanks for the insight and support everyone! I'll be sure to check out all those areas out when searching. It's reassuring to hear that other people are having success in that price range.
Flipper/Rehabber · River Forest, IL · Member since 2016 · 85 posts · 42 votes
8y
I mostly agree with @John Warren concerning opportunities in Berwyn, OP and Forest Park although there are properties in FP that meet your budget from time to time. Lots of positive trends in that locale.
I would say some good multi-family areas to look in for that price range maybe, Portage Park, Irving Park, Jefferson Park, Parts of Albany Park and Avondale, Belmont Craigan and Hermosa could work as well.
Something to consider would be the cost per unit and what size building you are looking to purchase as well.
Things I would say to look for are upgrades to public transit and infrastructure, a lot can change in 10 years for a neighborhood. Rental trends can also help you determine how neighborhoods are changing and increasing in value.
Unfortunately, there is no crystal ball, but only patterns and trends that we as investors watch and predict :)
Investor · South Bend, IN · Member since 2018 · 111 posts · 57 votes
8y
@Weston Harding No problem -- just trying to gather some information that hopefully others can use as well!
All good advice! I've started a side-by-side comparison of all the areas mentioned to narrow it down a bit. As you mentioned, being close to public transit is important to me, and will probably help close down on which spots to look at further.
Rental Property Investor · Chicago, IL · Member since 2017 · 83 posts · 46 votes
8y
I would definitely say Monteclare area and Elmwood park as well. I have been searching for my second investment property and there are some decent deals. I have also been very interested in Cicero, IL. It seems pretty underrated but I have been around there and it has a nice little small town feel to it. The prices are within range.
I just put a bid on a property in Elmwood Park for 225k. So that is a little lower then your range, but the building is pretty decent.
Check out Bridgeport and McKinley Park, you can still find pretty good multi units in your price range there. Its a pretty hot market, but if you act fast you can still get what you're looking for. We're closing on our first house/househack, a 2-unit in Bridgeport in a few days and have been looking at these near south west neighborhoods for a while now. Good luck!