6-12 Unit Multifamily Investment Locations In Illinois

[Linh Khuc]

Hi All,

I've been looking into multifamily investment property (6-12 units), been looking in the Chicago neighbors, western suburbs, dug into information such as population, income, job growth, crime rates, rent vs homeowner ratio....found these facts.

Chicago neighbors, west sides (Maywood, Berwyn, Cicero, Austin, Chicago Heights, Little Village) have higher rent vs home owner ratio, higher crime rates, lower average income, more building available for sale compared to the western suburbs (Aurora, Plainfied, Elgin, Joliet, Rockford). 

With that said, between west side Chicago neighbors and Western suburbs, each of them has pros and cons, the catch is hard to find a multifamily property (6-12 units) in the suburbs compared to west side Chicago, does it mean this is a good sign for the western suburbs ? 

Any investors have any thoughts about better location to invest in those neighbors ? 

[John Warren]

@Linh Khuc you are lumping quite a few neighborhoods together that are not at all the same class of neighborhood. For instance, you put Berwyn right next to Austin and Maywood... Berwyn recently got a second Starbucks so I am not sure you are looking at the right metrics here. 

There are definitely deals still out there in the 6-12 unit space, but there is less meat on the bone than there was four or five years ago. Many of the Chicago suburbs also have compliance inspections when a property sells which can add complexity for a newer buyer (an annoyance for an experienced buyer). You are almost definitely taking this on as a new buyer since all sellers want to avoid the frustrating repairs that come from these. 

Personally, I think the near western burbs are one of the better places to invest although there are no "easy" places to find deals right now.