Multifamily in NW Suburbs of Chicago - What gives?

[Ryan Rubel]

I'm doing some preliminary searches for a multifamily property within 20 miles of where I live in the northwest suburbs of Chicago (Schaumburg) which will be my 2nd rental property.  I have a lot to learn, but this website has been a huge help.

I noticed that I can't find anything that satisfies the 1% rule, and definitely not the 2% rule. Schaumburg is clearly out of the question, but even if I search pretty far outside of Schaumburg there's nothing close to hitting the 2% rule.  Anything I can find would need massive renovation, then wouldn't make the cutoff.

Anyways, I know there are probably plenty of investors in my area on this forum, so I thought I'd see if I'm just looking in the wrong places.

Does the 2% rule only apply to very low-end areas?  Sure I can find a multifamily in Harvey or Maywood that meets the 2% rule, but I woudln't want to ever go to the property myself.

Thanks for any insight!

[Mark Ainley]

@Ryan Rubel

 I have been on BP for about 20 months now and I really just pass up all of the "2%" rule items because unless you are doing deals on the southside of Chicago it seems like almost an impossible mark to hit out here in the burbs or on the northside.

Take a look into Elgin or northwest side deeper to get a better gauge into multi market. People looking out this way I suggest SFH since you can still find some steals, get killer rental rate, and appreciation is hitting hard this year and next couple of years. You have to look hard for the deals but they are out there. If you want a multi deal you will have to go into the city where deals still exist & taxes are lower.