Where to start In Chicago area Investing ?

4 Replies

@Robert Navarrette

Here is a map showing the rent to price ratios of all Chicago neighborhoods

Below are the top ROI neighborhoods from the above analysis

West Englewood, Chicago, Illinois 0.71
Riverdale, Chicago, Illinois 0.68
West Pullman, Chicago, Illinois 0.64
Roseland, Chicago, Illinois 0.61
Englewood, Chicago, Illinois 0.59

I would like to add that investing solely based on high returns will usual not yield a desirable result. 

The locations with high ROI are the roughest neighborhoods in the city and will bring with them loads of issues.

If this is your first investment and/or you are out of state and/or you want passive cash flow, I would advise you to look at the more moderate returning neighborhoods

Hope this helps! 

@Art Perkitny , well said. ROI is only half of the picture and stability and other factors are equally, if not more, important than ROI in and of itself.

The starting kernel should be investment objective: IE Cash flow vs Appreciation, asset class and desired ROI. From there, you can start to zero in/X areas from the expansive map.

Once you have a cluster of areas, you should work on making relations with a PM to see if they service your desired area and the attendant costs as this will be an important consideration in the total mix of information. Good areas will hover around 6% and less desirable areas will be around 10%. 

@Robert Navarrette Bigger Pockets does have some good state forums too. You have some good comments already but maybe try posting in the Illinois forum too.  I'm sure some good locals will comment there too. Thanks!

@Robert Navarrette - I think you have to ask yourself a few more questions about what your expectations are for ROI? What are you looking for? Are you looking for cash flow, appreciation or a mixture of both? Chicago's Northwest side is always going to be an appreciating market and the southside will always be a cash flow market.

Assuming you are likely an out of state investor, I'd develop your team (property manager, realtor, etc.) first and have them help you where to start investing in Chicago.

Best of luck!

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