Anyone investing in Illinois?

Question

Hi all, I'm looking to invest in BTR, spec or rentals in Illinois (specifically Bloomington-Normal, but will consider other locations) and would love to connect with other folks investing in IL.

Neal Fridrich · Answer

In my very bias opinion, Bloomington/Normal is an excellent market to invest in. New construction is certainly a viable option but I am seeing people have great success with the renovation of existing properties. We have an incredible amount of homes around downtown Bloomington that are 100+ years old that have nearly all been turned into 2-4 unit buildings. Getting those properties for pennies on the dollar, renovating them so they can withstand another 100 years, and fully furnishing them at a 30 day minimum is giving off some solid cash flow!

John Mason · Answer

https://www.facebook.com/groups/centralilrei/

Travis Timmons · Answer

It depends on what you're looking for...my perspective is that leverage + appreciation is what makes real estate worth the hassle. There just isn't the market appreciation, population growth, or job growth in the area to make me take a hard look.

The low entry price is tempting, but my opinion (usually unsolicited but not this time!) is that it makes more sense to invest in a market that will have greater rent and price appreciation over time. I also think that the average rents aren't forgiving enough to offset normal capex. A roof is still 10-15k whether you rent a place out for $900/month or $2900/month.

If you are in Iceland/Spain, though, I can get behind investing in any market that you have trusted friends/family locally. This is a hands on business, and having family that you trust in the area is a big deal if you are that far away. I like Champaign-Urbana a bit more, but the thoughts above still ring true (and property taxes are a real headwind to appreciation).

Rafael Pinho · Answer

Would love to hear more about that!

John Mason · Answer

https://www.facebook.com/centralilrei/

Rafael Pinho · Answer

Thanks for your solicited opinion Travis! You're right, it's a market that doesn't appreciate much and the rents are low. But since I'm looking into ground up, there should be some sweat equity to be captured. It depends of course on a good deal on the land, HUD offsets, grants, tax credits etc. I'm trying to find people who are actually doing it to check that the theory works. Where are you investing?

Eric Gerakos · Answer

No. I don't think anyone actually lives in Illinois.

Travis Timmons · Answer

I grew up in the area but do not invest there...what in the world caused you to land on Central IL all the way from Reykjavik/Barcelona?

Anyone investing in Illinois?

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