Why is properties so cheap in Chicago Illinois's?

Question

I'm thinking of investing into the Chicago market. I'm interested because I have a business opportunity there other than Real Estate and since I'll be working that territory I would like to invest into some homes. I'm seeking BRRRRs or Flips.

Please any on advise for this Market will be greatly appreciated. If you're local in Chicago I'll even be willing for a meet up. I'll be doing my homework. Thanks Paul 👍

Brie Schmidt · Answer

@Paul Vonasek - The city alone is 234 sq miles - there are 77 neighborhoods - you are going to need to be more specific

Art Perkitny · Answer

@Paul Vonasek these maps may help with familiarizing yourself with the Chicago sub-markets.

The first one is north Chicago and second south Chicago. Each location is colored and corresponds to an area classification of A thru F. The lower rank the area, the higher the risks will be.

The property for 50k you mentioned sounds like it is likely in D/F location as @Jeff Burdick stated. I would check with the map I have provided and probably avoid D/F areas if this is your first investment.

As for neighborhood recommendations, I actually lived in Bridgeport for a year. It's mostly a C grade location which should provide you with a good balance of risk and reward. May be worth checking out.

Bob Floss II · Answer

@Paul Vonasek You need to become familiar with all the local rules, pocket areas, and assemble a team. Chicago is a competitive market and you'll need good people around you to succeed.

@Brie Schmidt can get you on the right track. Attend some networking events. You'll also want a good real estate attorney, lender, and contractor.

Account Closed · Answer

Ha Ha COOK COUNTY?????

For starters how about high property taxes and an insolvent

state implying even higher property taxes in the foreseeable future?

With that thought in mind, there are some "burbs" that are established

neighborhoods.  How about Evanston?  You'll always have employees of

Northwestern looking for rentals.

As for south Chicago, I'll never forget my Dad driving our family through

there.  He made my mom and us kids all "duck" under the windows so we would be out of gunshot range.  No joke.

Brie Schmidt · Answer

I have no idea where that is, and I would be very cautious.  The areas I deal with are in the $650k range

I would check out the crime maps before ever considering a property under $200k in the city

Bruce C. · Answer

@Art Perkitny what site are you using to generate that chart?  I’d like to make some for areas in Texas

Syreeta Stewart · Answer

@Paul Vonasek I currently live in FL. I been trying for a month to move this property in Olympia Fields, IL...Not sure what to do with this our of state property?

Jeff Burdick · Answer

Where was it located?  A 50K home is going to be located in a class D neighborhood.

Paul Vonasek · Answer

@Brie Schmidt What neighborhood do you recommend to look at to purchase? I'm going to scout the neighborhoods when I arrive. I'm blown away at the cost of homes in Chicago. But because there cheap does not mean that there good deals. I say one home for 50k and then went to rentometer and the rent was 1100 per month. This is a great property to brrrr

Paul Vonasek · Answer

@Tyrone Jackson I flip in California.

Why is properties so cheap in Chicago Illinois's?

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