what are best areas for rental properties in Illinois?

Question

I am looking to buy one or two rental properties in Chicagoland and I have started looking at north and northwest suburbs but there are not a lot of good deals. Most properties have cap rate about 5-6%, where are others looking for good income properties in Chicago area?

Ravi P. · Answer

Chris, just make sure you are paying attention to the property taxes. If you buy in Cook County, the property gets reassessed every 3 years. If the property has not been reassess you should budget atleast 15-25% increase, higher in the areas that have seen significant appreciation.

Tim Sutton · Answer

@Scott Steffek

Hi Scott,

I hope all is well. I recently seen your post and I'm very interested in connecting with someone in the IN market. I'm actively looking for 3-4 cashflowing units in Chicago but continue to come up empty and I'm seriously considering opening up my search. Are you free to catch up and chat?

Please PM me and we can exchange contact info.

Kind regards,

Tim

Scott Steffek · Answer

Chris,

We do business in Northwest Indiana. We're about a 40 minute drive to Chicago. The taxes are much lower out here and acquisition costs are far less than Illinois. You might want to take a look at this area. I can get you in to rental properties in good areas for around $80-$90k and that price includes rehabbing. Taxes are running anywhere from $500-$1400 a year. We find properties for investors, rehab them and manage them, so your location doesn't really matter. PM me for more information. Best of luck in your business.

Ritch Bonisa · Answer

Indianapolis has been good to my business.  If you are out of state or even for foreign investors, you just want to make sure you have a local team in place or at a minimum good contacts in that city.  I know people in Indianapolis, Charlotte NC, and Cincinnati if you are looking to begin building a team.  If I can help make some connections - PM me.

Brynn Misener · Answer

@Chris Zlotnik We secure rental properties in both Will and Cook county - it just comes down to the numbers, but we are CAP rates closer to 9-10%.

Chris Zlotnik · Answer

@Ravi P., i have couple friends and my family that have rental properties and always complain about taxes, especially here in cook county it can fluctuate a lot from year to year. But I think you still better off with areas that appreciate quicker as you can raise your rents to recoup some of the money that you need to pay for higher taxes.

Chris Zlotnik · Answer

@Alex Bok, I didnt know that wilmette has rental properties, if it does, taxes has to be probably outrageous.

Chris Zlotnik · Answer

@Jim Tannehill, I have been looking at St Louis and Indianapolis, I like to work with bigger markets. But this would be my first property that is out of state so I am taking my time to see if there may be something here.

what are best areas for rental properties in Illinois?

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