Anyone own Chicago multi-unit rentals during the last crash?

[Gillian C.]

I’m looking to hear from folks who owned multi family rentals in Chicago (or elsewhere, though specifically interested in Chicago) during the last downturn.

- Did rents go down?

- Did you have higher or lower demand for renters?

- Increased issues with non-payment / evictions?

Basically aside from the obvious hit of the resale value, I’m looking to hear about what you experienced from a landlord perspective. Anything wish you knew or wish you had planned for also welcome. We just bought our first multi and with all this talk of a potential downturn want to be as prepared as possible if and when it hits (especially since we are looking to buy another now).

[Aaron Vaughn]

Great questions Gillian! Rents, especially subsidized rents which make up the majority of rents in class C and D neighborhoods did not go down, nor did the demand. Chicago has long been a city that’s had a housing shortage. as far as evictions are concerned, those folks not in subsidized housing were affected more so than low or no income section 8 renters. 

I sense a concern about moving forward with rentals and I’ll quote Warren Buffet who said when some become fearful , become greedy!  Use fear as a motivator not something that halts your investing. Hope this helps.