Hi, I'm an out-of-state investor looking at properties in the 60411 zip code. I see the price-to-rent ratios in the area look favorable, and the crime report on NeighborhoodScout.com makes it look C-class but not terrible compared to other places I've seen. And rent rates appear to be on the upswing, according to Rentometer.com.
Anyone have strong opinions on investing in this area? Trying to figure out where it lies on the spectrum between "war zone" and "solid working-to-middle class".
There are definitely good pockets (Flossmor school district area) but watch out for taxes they are super high. Make sure any numbers you are running are WITHOUT the occupancy discount. Their crazy high property taxes are even higher for OOS investors.
For anyone else reading this thread, the occupancy tax appears to refer to the following:
Primary residence. You may qualify for a homeowner exemption if the house in question is your primary residence. Depending on local tax rates and assessment increases, as well as your own income level, this can reduce your assessed value by up to $10,000. (See 35 ILCS 200/15-175.) Source
So for example, if the county assessed the property's value at $100,000, an owner-occupant would only be taxes at $90,000. An investor like myself would be taxed at the full $100,000. Considering that Illinois has the 2nd-highest property taxes in the country, this is an important consideration. Furthermore, the lower the target property's purchase price, the bigger the impact. In other words, a $10,000 assessment discount on a $50,000 property has much different tax implications than the same discount on a $500,000 property.
They are closer to "war zone" than "solid middle class", I generally try to avoid driving through there. But I don't think they are as bad as areas like Dolton, Calumet City, and Gary.