Aurora Illinois Rental Market

[Alex P.]

Hello All, 

I am just starting out and currently doing a lot of research.  I was mainly looking into some multifamily properties in the Aurora Illinois area and the numbers seem to work rather well.  Are there any local investors out there that could possible give me advice on this market or a warning on what to watch out for and/or places to avoid?  Thank you for reading and again, this I am still in the preliminary research stages looking at the different markets around Chicago.  

Regards, 

Alex

[James Ihssen]

Hey Alex!!  I am a Real Estate Broker and Investor and my (Illinois) target area is centered right around Aurora.  Aurora is a great place to invest, with that being said, there are certain areas that present different challenges, which really depends on your strategy, and the risk profile that you are willing to accept.  

Assuming that there generally A type areas, B type areas, and C type areas, with A being the best neighborhoods and C being on the opposite end; any of those areas are potential investments that will make money.  All of those areas exist to different degrees in Aurora as well.  There are some Fantastic Areas right around Aurora that make great investment locations also, including the Fox Valley Region, North Aurora, Batavia, Geneva, St. Charles, Sugar Grove, Oswego, Montgomery, Yorkville, Plano, Sandwich and Naperville of course.

Most of those cities outside of Aurora are generally A type and B type areas.  Great places to raise a family and hence they are great places to invest.

Those are generally my favorite areas these days, mainly due to the proximity of where I live and also my belief in the long term future of the area.

As a first time investor you may want to play it safe and focus on the better areas, but understand those areas are going to cost more per unit.  I would recommend having a solid grasp of the pros and cons of each, also drive some neighborhoods and get a feel for the area.

Also, management plays an issue in your question.  You may be a bit less hesitant to invest in C areas if you know someone else is going to be doing the 'day to day' management of the property.

Lately I have been 'shopping' for my real estate by school district.  Schools, in my opinion, drive demand and shape demographics, which will always keep a steady supply of renters / buyers available for my product, even 25 years down the road.