Flipper/Rehabber · Chicago, IL · Member since 2016 · 123 posts · 38 votes
I fix 'n flip in Chicago area and always want to get sucked into rentals. But when I run the numbers and account for EVERYTHING, the numbers don't add up.
Maybe I'm being too conservative but 1-200/month cash flow is what I'm ending up with. Add in turnover cost and I don't see how everyone is making money with rentals in IL.
Property taxes are through the roof; are you able to petition those down similar to your own residence?
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y
@Francis Rusnak cash flow is alive and well here in the Chicago suburbs I can assure you! I am about to pick up a deal that should net around 15% COC. Not everything for sale makes sense, but you can definitely make money still.
Rental Property Investor · Chicago · Member since 2018 · 612 posts · 1k+ votes
7y
Reposting @Ibn Abney's last sentence for emphasis: Not all areas south of the loop are warzones and property values are 40%-60% cheaper than similar properties north of the loop!!
Maybe I'm being too conservative but 1-200/month cash flow is what I'm ending up with.
New investor here, but $100-$200 a month per door isn't - in my opinion, terrible. Not great either, but it those doors add up quickly once you're getting into larger buildings or multiple projects. As others have said, not every deal will work but there's definitely opportunity all over Chicago. Just takes some looking.
You can easily cash flow in Chicago simply by staying out of Chicago. Mayor Lightfoot is going to introduce rent control, killing Chicago in more ways than one.
You can easily cash flow in Chicago simply by staying out of Chicago. Mayor Lightfoot is going to introduce rent control, killing Chicago in more ways than one.
Name a single city where rent control has damaged a city or its real estate market or made it unprofitable to be a landlord.
Let alone killed it. They all appear to be doing fine overall.
Landlords do just fine in all rent control cities. Being a landlord in nyc, sf and tons of other rent control cities is a pretty attractive gig.
You can argue it doesn't achieve its stated goals very well. You can argue its different and a pain in the ***. Some landlords will have a difficult transition. But it doesn't kill cities.
"Name a single city where rent control has damaged a city or its real estate market or made it unprofitable to be a landlord."
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New York City and San Francisco, for two. Proof is in the pudding. Look at landlords' levels of deferred maintenance, tenant buy-outs in the millions, tenant force-outs, etc., etc.