Next gentrifying neighborhoods in and around Chicago MultiUnit

[Veronica Mitchell]

I'm looking to see what are some of the multi-unit in and around Chicago area to buy in?

[Erika Carter]

Woodlawn! Near the new Obama Library!

[John Clark]

Southwest side. West Lawn. West Elsdon. Archer Heights. Brighton Park. Follow the Orange Line

[Henry Lazerow]

@John Clark haha in Albany Park there are now million+ new builds and 2 units in average condition sell 5-600s. It most definitely is gentrified and getting nicer and nicer. Rents are also going up 10%+ yoy there right now. 

"I have a very simple criteria for when an area is gentrifying as opposed to just generally improving: If it makes economic sense to buy (at market price) and tear down an existing structure in order to build and immediately sell a new building, then the area is gentrifying. General improvement is not gentrification.

So gentrification only occurs in areas with the right infrastructure that have hit bottom. Albany Park, West Elsdon, Hegewisch -- those places will never gentrify. They will improve, but never "pop." Why? They never hit bottom. Bronzeville hit bottom. It's gentrifying."

[John Clark]

Quote from @Henry Lazerow:

@John Clark haha in Albany Park there are now million+ new builds and 2 units in average condition sell 5-600s. It most definitely is gentrified and getting nicer and nicer. Rents are also going up 10%+ yoy there right now. 

"I have a very simple criteria for when an area is gentrifying as opposed to just generally improving: If it makes economic sense to buy (at market price) and tear down an existing structure in order to build and immediately sell a new building, then the area is gentrifying. General improvement is not gentrification.

So gentrification only occurs in areas with the right infrastructure that have hit bottom. Albany Park, West Elsdon, Hegewisch -- those places will never gentrify. They will improve, but never "pop." Why? They never hit bottom. Bronzeville hit bottom. It's gentrifying."

I used to live in Mayfair. Albany Park surprises me, particularly as to new builds. Older houses going for $600k isn’t gentrification though. Are the new builds the result of buying to tear down?

[Henry Lazerow]

Yes they are buying old homes to tear down to build there now. I predict Albany Park turns into the next Lincoln Square and gets even pricier. It's got train stops and checks the boxes for homeowners. You can still get cashflowing 4 units there though which sell mostly to investors, its just the sf and 2 units that have gone crazy on price recently. Seen the same by me in Rogers Park 2 units going into 6-800s but 4 units still cashflow and have not appreciated as much. Different buyer pools homeowner vs investors and the returns are definitely in the 4 units or in value adding the 2s. Right by clark and Devon just few hundred meters out of rogers park into edgewater new builds going into 1.4s. It’s pushing in. Whenever rates fall going to cash out refi again my Roger’s park 4 now getting close to 500k total profit off that one deal now. 

[Paul De Luca]

Woodlawn, East Garfield Park, Marshall Square/Little Village.