Updated almost 5 years ago on . Most recent reply
Newbie investing in Chicago rental
Hi everyone! I'm new to real estate investing and really glad I stumble upon Bigger Pockets.
My goal is invest in rentals that cash flow and provide passive income. My local market (San Francisco / Bay Area) is way too expensive now so the cash flow math doesn't really work and I'm looking at out of state investments. One of the areas I'm doing more research on is Chicago, both downtown and suburbs. Reason for choosing Chicago is because I've spend a few years there so I'm familiar with the neighbourhoods.
Does anyone have any experience or tips around rental investments in that area? Would love to hear any tips or advice for a newbie like myself starting out! Thanks!
Most Popular Reply
Welcome @Shirlin Yiu.
There are over 200 neighborhoods in the city and probably the same amount of suburbs. I would recommend defining your goals and then evaluating 10 neighborhoods (population trend, price/rent ratio, job diversity, crime, government/development plans....etc). Once you do this evaluation, pick 2-3 and seek out individuals on BP that look like they play in these areas. This is how you can drill down to specifics.
In the city, as the cliche goes, it can be block-by-block so I highly suggest you get here in person and get boots on the ground if you're serious. Treat the cost of those plane tickets and coffee dates as an insurance policy.
There's a lot of macro-level negatives in IL and Chicago, but still great opportunity to make money.