Investing in Cicero. Is this a good area?

Chicago, Illinois
Chicago Real Estate Forum
7yFollow

Investing in Cicero. Is this a good area?

Nik Moushon
Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes

I've been presented an opportunity for an off market property in Cicero, half a block from the Junior High. I use to live in the west suburbs of Chicago but farther west (Carol Stream). So this area, I've heard of and road the Metro past, but never really knew much about it. Does anyone have any rentals in Cicero? What are the avg rents and cost per unit for a small MF rental...4 to 8 units? Is this a good city for investing or one to stay clear of? 

I havent got all the details on this property yet. I've only been asked if I would be interested. So I'm still waiting on an email for the details but would like to get some info on the area. Thanks in advance everyone.

0Reply
65 views

Most Popular Reply

John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y

@Nik Moushon I do a lot of business in that area and also own a six unit there. It is a decent C class area, although the town can be a bit of a pain. Make sure you understand the Cicero compliance inspection process. A lot of "deals" aren't so good once you realize you need to replace the entire electrical system. I am in the middle of a redoing the electric now on my six unit, and I have to upgrade the service, replace all the panels, put in hallway lighting, etc. It can be expensive. 

6Reply
See this reply in the discussion

17 Replies

Jump to latestLatest
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    7y

    @Nik Moushon I do a lot of business in that area and also own a six unit there. It is a decent C class area, although the town can be a bit of a pain. Make sure you understand the Cicero compliance inspection process. A lot of "deals" aren't so good once you realize you need to replace the entire electrical system. I am in the middle of a redoing the electric now on my six unit, and I have to upgrade the service, replace all the panels, put in hallway lighting, etc. It can be expensive. 

    6Reply
  • Nik Moushon
    OP
    Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
    7y
    Originally posted by @John Warren:

    @Nik Moushon I do a lot of business in that area and also own a six unit there. It is a decent C class area, although the town can be a bit of a pain. Make sure you understand the Cicero compliance inspection process. A lot of "deals" aren't so good once you realize you need to replace the entire electrical system. I am in the middle of a redoing the electric now on my six unit, and I have to upgrade the service, replace all the panels, put in hallway lighting, etc. It can be expensive. 

    Thanks John. I'm an architect by profession so inspections and codes dont bother me...as long as I anticipate them. What triggers this compliance inspection? Do you have a link for the rules/codes for this by chance? 

    Do you mind sharing what your rents are for your 6 unit and what your cost per unit was that property?

    1Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    7y

    @Nik Moushon a compliance inspection is done every time a piece of property is going to sell. Before you can have the deed for closing you will either have a letter of compliance, or you will be signing paperwork as the buyer to buy the property "as is". I don't have a way to get the statistics, but a lot of properties are being sold as is because the sellers don't want to deal with the headaches and time to get the properties compliant. 

    I am happy to share details on rents, etc. Shoot me a PM. 

    2Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    7y
    Originally posted by @Nik Moushon:

    I've been presented an opportunity for an off market property in Cicero, half a block from the Junior High. I use to live in the west suburbs of Chicago but farther west (Carol Stream). So this area, I've heard of and road the Metro past, but never really knew much about it. Does anyone have any rentals in Cicero? What are the avg rents and cost per unit for a small MF rental...4 to 8 units? Is this a good city for investing or one to stay clear of? 

    I havent got all the details on this property yet. I've only been asked if I would be interested. So I'm still waiting on an email for the details but would like to get some info on the area. Thanks in advance everyone.

    We don't have any rentals in Cicero but have helped clients that purchase some multifamilies in Cicero, then we helped them manage the renovation & occupancy.  The keyword is occupancy.   Cicero has some old stock of multifamilies with some bedrooms that by today's standards aren't any more than closets.  A property may be advertised as a 2 or 3 bedroom, but once a property has been transferred from a sale the city would reduce the bedroom count unless the renovation plans included increasing the size of what used to be bedrooms.  Sometimes that was impossible.  Pay close attention to this once you receive the information on the off-market property.

    With regards to working with the city of Cicero- It was actually pretty good.

    312-681-7487
    0Reply
  • Nik Moushon
    OP
    Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
    7y

    @John Warren Thanks for explaining that to me. As-is wouldnt be a problem for me. At least on paper. I'll have to see how "as-is" it actually is. 

    0Reply
  • Nik Moushon
    OP
    Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
    7y

    @Crystal Smith Thanks for the clarification. Glad to hear the city is at least able to work with.

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    7y

    @Nik Moushon the real question is can you read between the lines on the inspection! Good luck on the deal. I am interested to hear more as you progress with it. 

    1Reply
  • Art Perkitny
    Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
    7y

    @Nik Moushon

    Based on the data, Cicero is looking like a D area on an A to F scale. 

    Things do get better as you move west however (see map below)

    The average rent according to the most recent american community survey is $875, which is lower than neighboring Chicago's average at $1,029. 

    1Reply
  • Matthew Olszak
    Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
    7y
    Originally posted by @Art Perkitny:

    @Nik Moushon

    Based on the data, Cicero is looking like a D area on an A to F scale. 

    Things do get better as you move west however (see map below)

    The average rent according to the most recent american community survey is $875, which is lower than neighboring Chicago's average at $1,029. 

     Pfft, Cicero is far from a D area. Nice try attempting to slip in your advertising for your "market analysis" platform as a helpful post, but its done you way more harm than good because its blatantly incorrect. Which is exactly why folks come to local forums on here vs. using services like yours or trulia crime maps, citydata, etc.

    Couldn't be more wrong...

    2Reply
  • Art Perkitny
    Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
    7y

    Hey@Matthew Olszak

    I would love to hear more specifically why you think Cicero deserves a higher rank and maybe I can tune the algorithm to perform better in the future.  

    What grade would you say Cicero is on average? 

    I think services such as mine compliment forums like this one. The former can be used to get a higher level perspective on a and quickly scan a large number of locations, the latter for more disparate, granular details that are hard to come by in a data-set format.

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    7y

    @Art Perkitny Cicero is a very solid C area. There isn't much crime for the amount of people, the tenant base pays well, and there are tremendous opportunities for employment. In addition, Cicero has incredible access to transit and is located around 15-20 minutes from the loop. This area isn't perfect by any means, but it is most definitely not a D class area where there are bullets flying in the street, etc. 

    0Reply
  • Art Perkitny
    Specialist · Cleveland, OH · Member since 2018 · 232 posts · 348 votes
    7y

    @John Warren

    I see what you mean. The current version of the scoring algorithm does not factor in crime due to the fact that the data is sparse and reporting quality varies from agency to agency. 

    This may be why the score is coming back as D and not C since the indicators that are considered are not the most ideal for the area. 

    I would like to point out that the scoring is on a A to F scale. Not sure if you were aware, but this may partially explain the ranking as well. 

    Nonetheless I do appreciate the feedback! 

    0Reply
  • Eric M.
    Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
    7y

    @Art Perkitny I think your scale is the issue. Letter grading re neighborhoods and property is already a thing and the scale is a to d.

    People are very used to it and so if you are trying to redefine the scale you are going to run into constant misinterpretation.

    You already have offended a couple of guys here who know Cicero is not a d area.

    And by the way, your faking like a buyer to get data for your software or show your screenshot was ridiculous. Just be upfront about what you are asking.

    1Reply
  • Michael Slingerland
    Member since 2019 · 3 posts · 0 votes
    5y

    @Nik Moushon  Did you go through with the deal?  Cicero is one of the areas I'm looking to purchase in and I'd love to hear your thoughts.

    0Reply
  • Nik Moushon
    OP
    Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
    5y
    Originally posted by @Michael Slingerland:

    @Nik Moushon  Did you go through with the deal?  Cicero is one of the areas I'm looking to purchase in and I'd love to hear your thoughts.

     I did not. 

    0Reply
  • Michael Slingerland
    Member since 2019 · 3 posts · 0 votes
    5y

    @Nik Moushon Because of problems with the area or because of other factors?

    0Reply
  • Nik Moushon
    OP
    Architect · Wenatchee, WA · Member since 2018 · 843 posts · 907 votes
    5y
    Originally posted by @Michael Slingerland:

    @Nik Moushon Because of problems with the area or because of other factors?

     Other factors regarding that specific property. nothing about the area itself.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free