Multifamily investment locations in Chicago West suburbs

19 Replies

I am doing a neighborhood research for 3+unit multifamily investment (my first multifamily investment). I am looking at Berwyn, Oak park and Forest park locations. My strategy is to buy and hold.

Looking for advice from the group on the above locations or other locations to consider.

Hi @Chin Bhatt . You are looking at some good areas to have property in. I just closed on a 2-Unit in La Grange. That's just a few minutes down the road from Berwyn. I'm sure you'll keep hearing this but these great areas have also become very desired areas. That means there has to be some additional work and patience required. That said, depending on what you're looking for you probably can find something that works in the long run.

I suggest you get in touch with @John Warren . He's the best in these areas. He has a bunch of experience investing in these areas. I'm sure he can help you too.

@Alejandro Calixto thanks for the shout out! @Chin Bhatt I would love to chat at some point. There are solid deals out there, but like Alejandro mentioned you have to have a lot of patience. The good thing is that the tenant pool is phenomenal in the western suburbs, and all three of those suburbs offer great opportunities due to the building stock.

@Chin Bhatt

Where do you plan on searching for these properties, MLS or off market?

The MLS is super competitive and the good deals become contingent the day they are listed. I recently went thru this on my last 4plex deal.

@Chin Bhatt

Three unit owner in Forest Park. Absolutely love the area and the village office has been great to work with. We had some initial concerns with getting the rents we wanted - our units are at the top end of the market, but filling them at ~$2k/month was a breeze.

We’re hoping to refinance our FP and Avondale buildings this spring and begin the property search again. FP will for sure be at the top of our list.

@Bradley A. good to hear you got the rents you needed. I am always surprised by the top end of the rental market in Forest Park! A lot of my clients have done very well there. 

There have been quite a few high profile violent crimes in Oak Park recently and partly as a result of that Forest Park is getting more popular. The village has done a great job on upgrading the Madison Ave biz district and the town is finally overcoming the impression many had of it being the place where folks in Oak Park went to drink. It's proximity to downtown Chicago is a big factor in it's popularity too. The schools in Forest Park aren't very well regarded so young families tend to look elsewhere but it appeals to empty nesters, childless couples, working singles, etc. 

Originally posted by @Chin Bhatt :

I am doing a neighborhood research for 3+unit multifamily investment (my first multifamily investment). I am looking at Berwyn, Oak park and Forest park locations. My strategy is to buy and hold.

Looking for advice from the group on the above locations or other locations to consider.

I don't think you can go wrong in any of these areas.

 

@Mark Preza this thread has thrown around a lot of different towns that offer very different returns. Oak Park offers almost no COC returns from what I can tell as it is an A area. Forest Park and Berwyn both offer very good opportunities from time to time, but as they are more B/B- class areas it may take some time to find the right deal for you. Cicero offers cash flow more regularly, but you have to wade into the C class to get it. I own in both Berwyn and Cicero, and I am getting double digit COC returns in both markets.

Originally posted by @Jessica Huang :

@Tom Kaz I have been investing in West suburbs, the good deals are gone so quick!! how do you get off market properties?

 Jessica - Where are you mainly looking for your properties? Do you have a realtor? I'd be glad to give some insight, but most off market deals come from word of mouth or contacting the sellers directly. 

I may ask my current neighbor if hes willing to sell, has an identical unit as mine and its kind of run down. Maybe he is sick of being a landlord and throwing him an offer can get the ball rolling.

@Jessica Huang there are a lot of ways to get off market deals. I send out almost 3000 direct mail pieces per month to my target markets here in Berwyn and Forest Park. I find that I get around a 1% response rate over time, so from that I can occasionally bring my clients a solid off market opportunity. Some of those will also turn into regular market rate listings though. There is also a lot of value that can be had from local networking groups over time. I was able to do two off market apartment deals where I knew the sellers for quite a while from networking. None of this is get rich quick stuff, but if you are invested in a market over a few years you will start to see deals come your way.