Questions About Investing In Chicago

[Emma Chen]

Hello all BPers from Chicago,

My name is Emma. I am an out-of-state investor from San Diego. I am currently looking into Chicago for buying some rental properties because I have heard a lot good things about Chicago. I have some questions about the local rental market:

1. What neighborhoods/zip codes are good and safe for rentals?

2. Any recommendations for good local property managers, wholesalers and conventional loan broker?

3. What's average price(range) for a 3br/2ba SFR? and what's rent$ for the house?

4. Is small multifamily(2-6 units) easy to be rented out comparing to SFR?

5. Any other suggestions/tips about investing in the market?

Thank you so much for your time.

Emma Chen

[Dooreuhn Cee]

Hi Emma, I am in CA as well and investing in Chicago. Not sure about your connections, but being raised there is a huge benefit for me.

1. Depends on your risk tolerance, ie, generally more risk, more reward. Being out of town, if you don't have much in boots on the ground there, I would stick to select areas of the southside to get bang for your buck but not Englewood or Roseland.

2. LOL re PMs.  There is the trick.

3. Depends, but you can get a decent area for 70k with a 1,200/mo gross rent.

4. Yes, but higher management needs from out of town and higher turn over.

5. The most buck bang is in distressed properties which raises new sets of issues for out of state rehab.  Turnkeys I see in these same areas IMO are overpriced for equity although the cash flow on paper works.