Trying to Understand Chicago Market

[Leo Koonan]

Hi Guys,

So i've been looking into several areas of Chicago and there is something that i cant really understand.

I've encountered properties just like this one:

1048 W Garfield Blvd,

Chicago, IL 60609

many properties in the Englewood and Back in the Yards areas...

When i analyze them i see that there are "waves" in prices going up and down when the same building can be sold for 30k and then for 250 within each 5 years or so...

I also see pretty high rentals there ($1100/m +) ... so the market is pretty strong...

so how is it that there are so many multi family buildings like that around what looks like to be good C+ and B areas but they stay on the market for months at the time...

Is there something about Chicago laws ( other than the high taxes ) that i am missing and everyone knows about, so they dont "bite"? 

[Eric M.]

ItOriginally posted by @Leo Koonan:

If you'd compare markets ( Chicago to IN to TN)  and yes i know they are different... would you still invest in to Chicago area? or you cant trust any comps from there at all?  

I would like to connect with investors from that area and chat... see if its worth a look...

 Thank you Guys!  

 Well Chicago can be a fine market to in nvest in...many people do. But I just think you have a whole bunch wrong.

First, even calling Chicago one market is fundamentally wrong. We have high income, low income, areas of great appreciate, areas of great income producing, section 8, high rent condos, middle class suburban....it all depends on your goals and budget.

Second, I didn't say you couldn't trust comps in Chicago, I said you couldn't trust them in the neighborhood you are looking.

Third, there is no substitute for going to the area you are going to invest hundreds of thousands of dollars.  You can't get to know an area by posting on BP. If you are to the point of researching specific property you need to physically go there.