Chicago South side.. good investment area?!

12 Replies

Has anyone invested in chicago area? Is south side by the lake a good area to invest? Has anyone heard about the new development around 87th street by the lake along the new lake shore drive? I'm contemplating on investing in chicago area where it is still affordable. Thanks!!

Hi Lindsay,

I'm an investor in the south suburbs. I'm not familiar with the area you are looking into by the lake.  I know the dirt cheap properties are dirt cheap due to crime.

Marvin

Hi Lindsay, I work on the South side most of the times as a Realtor. It really depends on the types of investment you're looking for and your budget. Are you looking to collect rents? Or are you thinking more of flipping houses? 

Originally posted by @Lindsay Rudolph :

Has anyone heard about the new development around 87th street by the lake along the new lake shore drive? I'm contemplating on investing in chicago area where it is still affordable. Thanks!!

 The Lake Shore development project you're referring to was conceived many, many years ago.  If you're investment plans have a 20 year horizon then maybe consider investing in & around that area.  If not then don't do it.  The southside itself, independent of this project, has some pockets that are good for buy & hold, some that are good for flips & some that you just want to stay away from.  You need boots on the ground to help you sort it out.

I would probably plan on living at the multifamily there for a year or two (fixing it up cosmetically) and then keeping it to rent out. I don't want to fear for my life by any means but I'm willing to live in an o.k. area for that time frame. 

As @Crystal Smith mentioned - don't let the planned development be your reason for that area. Although it's looking up you do want to stay on the main street (South Shore Drive) to avoid bad pockets.

If you aren't allergic to investing in condo's I would suggest that for that particular area.

Good luck,

Tim

If you're buy and hold, I would recommend steering clear of cook county. The landlord laws there are some of the worst you'll find anywhere.

Evictions can take up to 5 or 6 months easy. And the south side of chicago is not exactly one of the better areas in the county either.  I'm sure there have to be some good pockets there, but I would tell anyone to avoid cook county because of the risk. And that risk grows exponentially as the neighborhoods you're in get worse.

I would not buy in the City of Chicago because Chicago has too many rights for losers.  I buy in the suburbs of Chicago because it has a different set of rules than the city of Chicago.  Mike is right it can take up to 5 or 6 months for an eviction but in the suburbs where the prices are great and the neighborhoods are bad, that's where your experience and education come into play.  I have had evictions go bad before, but I paid the price and learned from it.  Screen, screen and do some more screening.  Go to court, see how the judges are.  Find out the tough judges and see how they treat the certain lawyers and then get the lawyers business card that they like.  I'm far from perfect but as my screening process gotten better, so did my tenant pool, and so did my life.  I don't know where else you can buy a house for 20-30 and maybe put another 10 to 15 in it and make an AMAZING return on it.  If those areas are around me, someone please let me know.  As of now, I'm still buying as much as I can in the suburbs.  Its sounds like a lot of work and it is but the skills I developed of sorting out low quality tenants now makes everything else somewhat easy.    

Originally posted by @Lindsay Rudolph :

I would probably plan on living at the multifamily there for a year or two (fixing it up cosmetically) and then keeping it to rent out. I don't want to fear for my life by any means but I'm willing to live in an o.k. area for that time frame. 

 If your plan is to live in the property while fixing it up & Chicago's south side is of interest then consider Bronzeville, Hyde Park, (sections of Kenwood); Pilsen & Little Village.  Due diligence will still be required on the specific block & surrounding blocks.  Your price point will be higher.  You can actually expect values to appreciate in Pilsen.  

@Edward Mccracken

which south suburbs do you usually invest? I look at a few and it seems like the property taxes are outrageous. The properties I have seen (ARV around $60-$90K) seems to have property taxes north of $5000 annually. That is a serious dent on cash flow.

Do you have market rate tenants or CHA/section 8 ones?