Should a OOS investor get started with multi-family in Chicago?

[Jimmy Lieu]

Hi all,

I am a new investor from Portland, Oregon, and I am looking to purchase a multi-family home out-of-state and live in one of the units. I started looking into Chicago IL because multi-families are quite popular there and its a pretty hot real estate market.

However, this would be my first property. Would Chicago be a good place to start investing in multi-family homes? How hard would it be to get started? And would it be more difficult than if I chose another state?

Thanks in advance.

[Sarita Scherpereel]

Hi Jimmy! I'm a bit bias because this is my market. But I grew up in Houston and I've lived in a few other states before settling here a 12 years ago. Chicago can be a competitive market especially during the spring market. Obviously, this year COVID change a lot of the "normal" conditions. Most investors like Chicago because of appreciation, high airbnb potential, easy airbnb city regulations and the ARV strategies for cashing out can be lucrative. Negatives are taxes are high and increase for a "windy" city, tenant laws strongly favor tenants and most buildings are over 100 years old. A seasoned realtor can guild you through those issues though. The biggest benefit for house hacking is you will work with the negatives better. You get a tax credit, you'll know your building and your tenants.

Chicago is a city of neighborhoods, so to speak in more specific terms it's helpful to know if you've narrowed down neighborhoods. If not, this is my general thoughts. Best of luck to you in your search!