Why is properties so cheap in Chicago Illinois's?

14 Replies

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 👍

Originally posted by @Paul Vonasek :

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 👍

 Why not come to one of the Chicago RE meetups that features lots of networking time? 

@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.

@Benjamin Hurwitz I know there are a couple meet ups on the Northside of the City. Do you know any in the south Suburbs? I’m a member of the Dupage county meet up. Just wondering if you know of any out south?

Originally posted by @Anthony Presbitero :

@Benjamin Hurwitz I know there are a couple meet ups on the Northside of the City. Do you know any in the south Suburbs? I’m a member of the Dupage county meet up. Just wondering if you know of any out south?

I have never been to it, but perhaps consider https://www.meetup.com/Chicago-South-Side-Real-Estate-Investing-Meetup/

Best of luck!

@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

Originally posted by @Paul Vonasek :

@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

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

@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. 

Originally posted by @Paul Vonasek :

@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

 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

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.