recommended neighborhoods for investment? up to 120K flip or rent

12 Replies

Hi guys, I'm new here. I wanted to ask whether any of you can recommended on neighborhoods for investment? My budget is 120K and I will either flip or rent.

Section 8 is also relevant, or any better strategy you may recommend :-)


I invest in the southeast side. You can definitely do this for $120k or less. However, what type of properties are you interested in investing? If you need help let me know. I am a licensed realtor.   

Flipping is vastly different from renting. You need to make up your mind which you are going to do. For example, a flip at 120k allows the use of FHA loans allowing for repairs and you can therefore buy in nicer neighborhoods and deal with a better clientele. Rentals, not so much.

South side and West side are better investments than the North side when it comes to renting. Remember, transportation costs are the same thing as housing costs. Get on the Red line (South), Green or Blue lines (West, NOT Northwest) or Orange line. As you travel, check neighborhoods. See one you like? Get off and walk around. Like the neighborhood? Write it down and get back in the L.

Then, with your list of areas you like, do targeted searches.

Want to flip Wait until covid-19 is cured and consumer confidence is back.

Originally posted by @Tamir Hodorov :

Hi guys, I'm new here. I wanted to ask whether any of you can recommended on neighborhoods for investment? My budget is 120K and I will either flip or rent.

Section 8 is also relevant, or any better strategy you may recommend :-)


There are multiple neighborhoods on the Southside (I'm using Southside as a general term), South/Southwest suburbs & if you get lucky the western surburbs (We've gotton lucky there a few times) where you can find a property that you could flip for profit and/or decide to hold for cash flow if you have $120K budget. 

If you decide on the south suburbs you'll have to pay close attention to the taxes. There are properties that look like deals when it comes to purchase price, but taxes may destroy the deal, either for flipping or buy and hold. Also pay close attention to exemption- There may be low taxes because the owner is a senior or has a homestead exemption but the taxes will go up when you become the absentee owner. Taxes in the city are much better.

Regarding section 8- It's an excellent strategy as long as you establish an objective criteria for choosing your tenants & keep the property in tip/top condition so it can pass the Section 8 inspection.  Section 8 is especially a good strategy in our current condition as the rental checks to landlords are being paid by the gov't. There's no rental moratorium there.

 

The Janesville and Beloit market is only about 1.5 hours from you and this market has so much potential for deals here. The prices are significantly lower, taxes are less heavy and the job market is robust here. Amazon, ABC Supply and Dollar General are titans giving great jobs to tenants all around the area. Let me know if you want to touch base regarding the potential in this area.