How's the Chicago area for Buying a Condo/Townhome?

Question

Hey,

Just joined this website yesterday. Really liking the atmosphere and wealth of information. I currently own a condo close to downtown Seattle. Soon I will be moving for a minimum of 2-3 years to Illinois.

Specifically, I will be working in Lemont, IL which is about 30 minutes away from Chicago, IL. I am looking at properties in the area and they are affordable. The typical price I am seeing for a 2 bedroom, 1 bath is about $90-150k. With the math, it is cheaper for me to buy than rent.

I am not sure which areas between Lemont, IL and Chicago are good for investing/living/resale. While I do not have any kids, I would like to buy a place close to good schools for purposes of resale value. I am not entirely sure on the long term growth of the area in terms of equity but I would like to be in an area where potential tenants are available.

Anyone have any ideas which zip codes, counties, areas I should focus on?

I am visiting in late March for a job visit. Afterwards, I plan to check out some properties.

Any help is appreciated.

Regards,

Mushfiq

Account Closed · Answer

Hi Mushfig! Welcome to the BP community! Congrats on taking action and working towards your financial independence! Recently I've headed a group of  Chicago BP   investors that go out every Saturday to view properties and make offers using no money down lines of credit. I have documented our experiences in the investor deal Diaries forum under the name project BP. We have a lot of fun learning about properties and taking action!

https://www.biggerpockets.com/forums/522/topics/27...

Sarah Ziehr · Answer

@Frank Sanchez Its a good time to buy for owner occupants. If you are looking for an investment, you need to be looking at 2-4 flats for cash flow.

Frank S. · Answer

I wish the statement above was true across the board!  If that was the case, then, rents would justify asking prices. I don't see that in B and A areas.  Tthere are other benefits like amortization and taxes.

I'm actively looking, but I haven't lucky enough to find properties with positive or considerable cash flow.  Once can only try!

Josh Mitchell · Answer

@Mushfiq S.I think you will have better luck finding "investment" type properties in Bolingbrook. Hinsdale is rated one of the best suburbs in Chicago, and ofcourse that comes with a higher price tag. LaGrange/Lemont may offer some good mix of both. I would say if you are going to be in Bolingbrook, if I were you I would just keep going to Naperville. Just my opinion.

Mushfiq S. · Answer

@Josh Mitchelltotally agree with that. Luckily, my job is flexible so I can figure out times that work.

Thank you all for your help. I believe I have some areas that might be good. Wanted to ask the Illinois experts, how would you rank these areas if you were going to invest/live there? I have no kids. Just wanting to invest in the right spot for future rental potential when I leave the area in 3 years or so. I have a car for commutes which I plan to use.

Lemont

La Grange

Hinsdale

Bolingbrook

I am choosing a spot approximately less than halfway between Chicago city and Lemont. Bolingbrook is an outlier but I have heard good things.

Thanks!

Josh Mitchell · Answer

@Mushfiq S.Agree with what was said before me. Just FYI, 10-20 minute commute is not going to attainable in these areas. While the distance is not far, traffic will cause the commute to increase. You are looking at 45 minutes each way assuming you work 7-4, 8-5, 9-6 range. Just something to keep in mind, as the condo's downtown would cut down on this, and would also come with a higher demand for rent in the future. Best of luck!

Vicky S. · Answer

Hi @Mushfiq S.

Welcome to BP.

I agree with Sarah. Families typically look for 2 Bedroom vs 1 bedroom.

As for good schools goes, you can look into naperville, Hinsdale, Oakbrook. these are all within a short distance from Lemont. Lemont also has some good schools too. Sometimes you might strike a good deal on the outskirts/ adjoining cities of these towns wherein they can enjoy the schools of these cities but reside in a different township.

there are some good townhomes to be obtained in $150-200K (you might also get sometimes better deals) range in each of these areas that can be then resold/ rented for long term.

Feel free to reach out in case you have any questions.

Rgds,

Vicky

Mushfiq S. · Answer

Thank you Aaron. I will definitely keep tabs on the community you have going on!

Sarah, thank you for the information. I am OK with a 10-20 minute commute. I would like to drive (no train/bus). I am more than OK to drive towards the city on my days off. I personally do not like the idea of a condo in the main city. I will send you a private message so we can discuss more.

Thanks!

Sarah Ziehr · Answer

It is definitely cheaper to buy than rent in Chicago. With interest rates so low, it is a great time to buy if only to keep your living expenses very low for the time that you are here. There are rent or buy calculators out there that will confirm this.

As for areas you may want to consider, that depends a lot on you- how long of a commute are you comfortable with? Will you be driving or do you like the idea of hopping on the train to get to work? How do you plan on spending your weekends? If you plan to spend a lot of time in the city on your time off, you may want to consider doing the reverse commute- living downtown close to nightlife and Union Station. Naperville has some very good schools, but keep in mind that areas with good schools will have a higher price point, and most families with kids will likely want more than 2 bedrooms and definitely more than 1 bathroom.