Anyone doing rentals in Rockford, DeKalb IL or Beloit, WI

[James J Strnad]

I am hoping to hear from people that have been renting properties in Rockford Illinois, DeKalb Illinois and/or Beloit Wisconsin.

I plan to buy a 2-4 unit building by the end of the year possibly 2 buildings by then. I like the idea of multifamily over single family but I will go whichever way the money works out better. I am looking to target these areas because properties are cheaper, taxes are cheaper (not really in DeKalb), and I feel like I should be able to make a few properties work for me. I know these areas are not great areas and that is why everything is cheaper but I figure... the people in these town need to live somewhere!

Plus I thought it would be interesting for people investing in the same towns to have a conversation about their experiences.

Can't wait for the open dialog.

Thank you in advance,

James

[Lloyd Fulcer]

Piggybacking on Craig's comment above, you may think the taxes are low but it's a high percentage.  Rockford proper is 5%, so a 100,000 house will cost you $5k/yr.  Remember that the taxable value is set by the assessor, which may count your purchase price or what they will appraise it at by the neighborhood.  Lots of local terms and conditions apply with this.  The rest of the county may be around 4% Ptax.  Purchase price may be low here but some of the holding costs are higher, percentage wise.  A 1% deal here may lose you money if your financed.

Bottom line, where ever you invest- do your homework and know what your getting into.