Chicago / Illinois rental property

[Tara T.]

Hi, I am looking to sell my rental property in Edgewater and want to buy a rental property that generates good cash flow shortly after the sale to qualify for a 1031 exchange. Do you have good recommendations on which Illinois neighborhoods are good rental property neighborhoods? I want a location where I would not have a problem finding a tenant. I am a new investor and I would appreciate any advice or guidance! Thank you!

[Scott Steffek]

Hi Tara,

All the areas you mentioned like Oak Lawn etc; are all good rental areas. Be sure to look up the taxes on each property. I've seen rental property after rental property that doesn't cash flow, because of taxes. I would also take a look at Northwest Indiana. Taxes are about half of what they are in Illinois and home prices are very reasonable. You have a lot of Illinois people moving across the border, because of the high taxes. You might want to look at Merrillville, Hobart, Crown Point, Highland, Griffith, Munster and Valparaiso.  Hobart is slightly "lower class" than the rest of them, but it's an excellent rental market. It's by no means the hood! Best of luck to you.