Multi Unit in Oak Forest, IL

6 Replies | Chicago, Illinois

Hi BP Fam!

Looking into investing in a multi-unit in Oak Forest, Chicago, IL. I live in CA so trying to learn more about the area. From my quick drive around, it seems like a safe, quiet suburb. 

I will welcome any information about the area... some of the questions I'm wondering about:

- Are there any local businesses (colleges, hospitals, etc.) that can keep rental demand stable throughout the years?

- Any safety concerns?

- Any thoughts on the market? I'm not looking for an appreciation play but hoping value will at least stay consistent.

- Any property mgmt / service recommendations?

Quiet area. Mid-income level, maybe slightly shifted to the higher side.

No big businesses or anything crazy awesome going on.

Schools are ehh...

This isn't going to be a high appreciation area, you're in the southwest suburbs. 

@Vivian Huang you will find that this area is generally fine. Nothing really exciting is going on that far south, and in general these areas are more or less stable but stagnant. Just make sure you aren't over paying and you should be fine. 

Originally posted by @Vivian Huang :

Hi BP Fam!

Looking into investing in a multi-unit in Oak Forest, Chicago, IL. I live in CA so trying to learn more about the area. From my quick drive around, it seems like a safe, quiet suburb. 

I will welcome any information about the area... some of the questions I'm wondering about:

- Are there any local businesses (colleges, hospitals, etc.) that can keep rental demand stable throughout the years?

- Any safety concerns?

- Any thoughts on the market? I'm not looking for an appreciation play but hoping value will at least stay consistent.

- Any property mgmt / service recommendations?

Oak Forest- Sleepy burb;  Very safe;  very stable.  With regards to rental demand- Not a function of hospitals, businesses or colleges in Oak Forest because there arent' very many.  The demand is driven by people moving from the Chicago city southside to the burbs.  Pay close attention to Real Estate Tax as you run your numbers on property opportunity.  There are owner-occupied exemptions that may not apply to you as a landlord that could kill your cash flow.

My parents just sold there 6-unit commercial residential building this past year.  The building was purchased in Aug 2008 (not the best time time for real estate) but the property has had very low vacancy for the last 10 years.  Taxes are high as you mentioned because it's in Cook County.  Additionally, the city inspectors are a pain in the ***, they routinely fail inspections for issues that passed the previous year inorder to collect re-inspection fees.  Additionaly, the local police department started to impose to "crime-free" fee to the owner and additional paper work that needs to be provided to them for new tenants.  I've helped manage the property for since it was purchases to until it was sold i've noticed the quality of community in Oak Forest has gone down.  Our tenants and all the other tenants on the street were mostly professionals and retirees and now tenants consist of laborers and cash workers.