Chicago Market

[Ajani Bennett]

HELLO BP,

My name is Ajani and I am just starting out in my Real Estate Investing career and soaking in as much information and resources as I can.  I am analyzing potential properties through the BP analytical tools and often feel I need a better umbrella overview of the Chicago market to then narrow down to witch neighborhoods I feel best investing in being a new investor.  Chicago sometimes feels like a tale of two cities where you have great neighborhoods with great properties but very higher price tag and then not so great neighborhoods with very strong potential fixer uppers but leaves you wondering what types of tenets and rents can you charge in those areas to make the property a great or even good deal.  I am trying to look at neighborhoods that seem to be in a transitional phase where you have reasonable pricing and the neighborhood is turning around for the better for long term buy and hold rental property strategy.  

So with all that said, if anyone has good economic reports or real estates reports that focus in the Chicago area that they use that would be a great help?

Also if investors in Chicago or other cities have similar concerns as stated above, How do you look at the situation and use potential strategies to draw opportunities from the areas? 

And or am I over thinking it to much....

[Meghan McCallum]

Chicago is a tough market, you can't find ANYTHING that meets the 2% rule in the Northside. Investors have already gone and cleaned it all up. Woodlawn is good, but keep you eye on the areas the gays and hipsters are slowly creeping into...Rodgers Park has found a new resurgence and you can get some buy and hold rental steals there if you are willing to buy, fix and rent. In the areas you are looking to get into there will be higher crime rates (for now) and lower rents...but that's the risk you have to take in Chicago. You could have stolen the town 3-4 years ago. Now you really have to troll the borderline neighborhoods. I currently have properties in Chicago, Evanston, the DC area and western IL/Iowa (Davenport/Molive/Rock Island/Bettendorf) . I have a few tricks for finding great tenants. Send me a message if you want to chat more, or, if anyone wants to for that matter.