Rental Property Investor · Chicago, IL · Member since 2016 · 98 posts · 52 votes
I have one rental unit (condo) in the Bronzeville neighborhood of Chicago (south side) and am considering purchasing several more, but this time to flip. I don't see a ton of non-foreclosure closed sales on Zillow for the area. I'd love to get some investor insights into whether the area is ripe for condo flipping based on what you know about the area.
Investor · Chicago, IL · Member since 2014 · 143 posts · 37 votes
10y
There are quite a bit of single family new construction or 2/3flat conversion to to single family. They do seem to sit on the market for a little while but that is likely due to them being overpriced. The area is coming around quick, but I would be more inclined to buy/hold then flip in 2-3 years when the neighborhood has more of the amenities that attract homeowners as opposed to renters.
Investor · Chicago, IL · Member since 2014 · 143 posts · 37 votes
10y
There are quite a bit of single family new construction or 2/3flat conversion to to single family. They do seem to sit on the market for a little while but that is likely due to them being overpriced. The area is coming around quick, but I would be more inclined to buy/hold then flip in 2-3 years when the neighborhood has more of the amenities that attract homeowners as opposed to renters.
Investor · Park ridge, IL · Member since 2014 · 84 posts · 33 votes
10y
Difficult to say. The area is prime for comeback for sure but property taxes are going through the roof so many people are renting rather than buying in Chicago right now. If you can rent it I would rehab it and rent it out. Keep it at least 2 years and sell if you want. That way you avoid the capital gains taxes.
Real Estate Agent · Willowbrook, IL · Member since 2016 · 17 posts · 10 votes
10y
Love the Bronzeville area. Lots of rehabbers are moving units there. Very evident from doing a rental search on Craigslist, all you'll find are rehabbed rentals.
Investor · Park ridge, IL · Member since 2014 · 84 posts · 33 votes
10y
I have a mortgage broker on The near west side who gets me all of my deals. When you develop a relationship with a broker he can usually pull strings for you. He has financed my last four condos without any issues at all.
Investor · Chicago, IL · Member since 2014 · 143 posts · 37 votes
10y
@Demetrius Davis I have been hacking a 3 flat here for the past year and am seeing whats happening 1st hand. The bronzeville demographic is changing. When I first moved to Chicago in 2013 I lived here for 3 months, then moved to Greektown then Pilsen now back here 2 years later in 2015. I can tell a difference between 2013 and 2015. My opinion is that the easy access to rapidly developing South Loop and Hyde Park is making Bronzeville attractive to buyers who otherwise may not have considered.
Rental Property Investor · Chicago, IL · Member since 2016 · 98 posts · 52 votes
10y
@Kevin Coleman, I am seeing some of that too. One of my realtors advised me yesterday that the stronger market is east of King Drive. Would you agree with that?
Flipper/Rehabber · Chicago, IL · Member since 2012 · 45 posts · 24 votes
10y
Condos, in general, are dependent on the financial stability of all of the owners. A friend of mine shared that two or three (I dont remember) went through foreclosure and this impacted the value of his property. He lives in Bronzeville...although he is financially stable, his financial future was tied to the other owners. Also, Condo's, some make stipulations about whether or how many renters can be added to the property. Finally, I was a president of my 5 unit townhouse/condo in roger park, and it was very interesting in how we had to raise our HOA fees in order to meet capital expenditures...it seemed like when our toilets crashed or went away to toilet heaven, all of the others did too. Finding a good renter who likes condo living seems like a relatively safe bet...if the positive cash flow is not eaten away by capital expenditures, lack of reserves, and routine maintenance on big ticket items.