Updated 3 months ago on . Most recent reply
Pondering on 1st commercial Apt Blding. Any advice? Either Dayton, OH or Chicago, IL.
Good evening to all,
I'm 34 and have been land-lording a quadplex in Pawtucket, RI for the past 4.5 years. I've recently gotten a HELOC and while I would like to complete some renovations at home, a part of me has also been thinking about scaling and buying my first commercial apartment building. While my initial goal was to look into properties that would provide immediate cash flow (somewhere in OH), I've also noticed a few 6-unit properties in south side Chicago that I feel could garner much appreciation and eventual cash flow due to it being in a major city. Any insight (or a mentor for guidance =]) from someone who's gone through this experience, or has in depth knowledge on either of these two markets would be greatly appreciated.
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@John Clark thank you for sharing the resource. I did not intentionally try to mislead anyone. I also don't have anything to sell that is transactional and benefits off anyone purchasing real estate in Chicago.
As someone that lives in Chicago and sees things on a day to day basis, some areas may be experiencing population decline within the city. However, if you've been to many north side neighborhoods, there's literal bidding wars over rent because the areas are so desirable.
The debt is absolutely a concern as well as the local politics. It is Crucial to understand the dynamics of the city as this can affect your investment. If property taxes do go up, which they likely will, the noi will be less. I would say an offsetting factor to this is Chicago is not building nearly enough housing for its population which puts pressure on rents increasing. If there's one thing I'm not concerned about is rents increasing in Chicago, especially over an extended period of time. I'm not saying it'll be the best market, but there are a lot of pros with Chicago. And to your point about the water in the southwest, you are correct. Chicago will never run out of water in our lifetimes.
- Aaron Zimmerman
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