Accountant · Lemont, IL · Member since 2015 · 8 posts · 3 votes
Does anyone have direct multifamily home experience in the Joliet or near surrounding areas? I live nearby and I see the cash flow potential in Joliet from the numbers but does the stereotype of the area hurt anything?
Investor · Shorewood, IL · Member since 2011 · 79 posts · 18 votes
10y
I Invest in Joliet west and east. You have to know the areas. My properties are east of Larkin but west of center. Not very good appreciation but good cash flow . 10-15 % cap rates. 7-8% vac. Hope it helps.
Rental Property Investor · St Joseph, MI · Member since 2015 · 302 posts · 106 votes
10y
I don't know about multifamily as of yet, but I just bought 2 SFH's there. I'm in the process of renovating/ getting permits to renovate. Joliet has a pretty diverse landscape. If you are going to invest there, you need someone familiar with the area. The "stereotype" that I think you may be referring to most likely doesn't apply to the entire area. But I'm not sure what stereotype you are talking about. The entire city is not low income section 8 if that's what you mean.
Rental Property Investor · Houston, TX · Member since 2015 · 36 posts · 30 votes
10y
I think it depends on the location and the condition of the property. I was almost under contract on a 6 unit in Lockport that was an estate sale and very well maintained. It was the only MF property surrounded by SFHs so the low supply of MF made it attractive as well as the fact that it was only a few blocks away from the Metra station.
On the other hand, I looked at 6-unit in Joliet in August and although the property was in good shape, the area definitely was questionable. Also, Joliet has been hit with job losses in manufacturing that its upside seems limited. From a pure cash flow perspective the property had potential but the seller wasn't negotiating on price.
I agree with Nathan in that you really need to have good knowledge of the exact neighborhood your planning on investing in.
Accountant · Lemont, IL · Member since 2015 · 8 posts · 3 votes
10y
I guess I shouldn't use stereotype but rather diverse. It's just like any other city where there are struggling areas and then there are affluent areas. Only time and research will tell.
I think it depends on the location and the condition of the property. I was almost under contract on a 6 unit in Lockport that was an estate sale and very well maintained. It was the only MF property surrounded by SFHs so the low supply of MF made it attractive as well as the fact that it was only a few blocks away from the Metra station.
On the other hand, I looked at 6-unit in Joliet in August and although the property was in good shape, the area definitely was questionable. Also, Joliet has been hit with job losses in manufacturing that its upside seems limited. From a pure cash flow perspective the property had potential but the seller wasn't negotiating on price.
I agree with Nathan in that you really need to have good knowledge of the exact neighborhood your planning on investing in.
When the seller "isn't negotiating" it's up to you justify your offer. Sellers always think their property is worth more than it is. It's up to you to show your numbers and why you think they are justified.
Beyond that, some deals just can't be done profitably.
Investor · Shorewood, IL · Member since 2011 · 79 posts · 18 votes
10y
I Invest in Joliet west and east. You have to know the areas. My properties are east of Larkin but west of center. Not very good appreciation but good cash flow . 10-15 % cap rates. 7-8% vac. Hope it helps.
Melrose Park, IL · Member since 2015 · 88 posts · 30 votes
10y
On the job loss. Im not convinced high population of people here are semi drivers. Having two big rail terminals in/near by.
The bnsf and i believe the other is union pacific lots of jobs. Not to mention a lot of warehouses being built to handle the volume of containers. And distribution centers. I have been here all my life.
Like every other town u have good and bad neighborhoods. But alot of people dont know joliet is really big. The little brother
" crest hill il" that practically joliet is swallowing up whole. Good town to invest.