Best Chicago Neighborhoods to Buy Mulitfamily?

Question

Interested in moving to Chicago post college and want to start by investing in and living in a multi family unit.

What are popular neighborhoods for investors?

Joseph Konney · Answer

Hi @Justin Galante - There are a lot of options too choose from depending on your budget. However, the ideal neighborhood where you live and the one where you invest might not be the same. Working commute and area lifestyle are large factors to consider as well.

I personally like investing C areas that cash flow well that include some speculation of improving in the future as the city expands and stabilizes. For example, the wood lawn area on the south side and north austin / west humboldt park area on the west side. I currently have 24 units mostly on the west side of Chicago.

Feel free to connect and reach out. I'd be happy to chat about any specifics I can.

Frank S. · Answer

Logan square is popular. North center is popular. Lincoln park is popular. Popular doesn't indicate anything financially.   Do you want a good comfortable life or do you need to struggle in north Lawndale? How much cash are you bringing, 20%, 40% to generate cash flow, or are you going FHA? What's your financial goal? Find an area (yourself) and then look for a local agent.  This person must know the area well, better than you,  hopefully.

Be careful with the Biggerpockets house hacking Kool Aid. There is good education and tips,  but a lot of greed.

Good luck

Eric Johnson · Answer

Hi @Justin Galante, I agree with Joseph's reply on going into the C+ neighborhoods either 1 degree or 2 degrees of separation away from a gentrifying neighborhood with rapid development. Mckinley Park, Little Village, Woodlawn, Auburn Gresham, Avondale, Jefferson Park, etc. Are all Outlying neighborhoods that are going through development. If you need assistance in financing a rental property, I can definitely do that for you.

I currently live in the south loop area and Chicago is a fantastic city for ease of living, getting around, food scene etc. Can't be beat! (I lived in LA for 4 years, as well)

good luck!

Lucas Hammer · Answer

I have to add to Little Village. Research the area and make sure rents make sense. In a lot of multiunit buildings in the area, you'll be looking at potentially 400-500 rents with families that have been there 20 years.

Michael Facchini · Answer

@Justin Galante, agreed with the above.  Myself and my clients are focusing primarily on Mckinley/Little Village/Pilsen, Bridgeport & Bronzeville, Avondale, parts of Logan and Humboldt, Jefferson Park and Portage Park.

Daniel Cullen · Answer

Why limit yourself to a certain set of areas when it's so easy to search for multi-family properties online? If you'll be living in the property you buy then your commute will be a big factor in where you decide to hang your hat, no? You might even consider a close in suburb with good access to rail or to a lesser known neighborhood like Hegewisch which has a South Shore Line train station. Expand your horizons imho. You might even find something that will work for you in a bit pricier area like Bucktown. I have a 2 flat there with a garden unit that's perfect for AirBnB. Something like that could allow you to live in a nice buildling, in a hip location, with a big chunk of your mortgage paid by tourists.

Nidal Daraiseh · Answer

What do all the Chicago investors say to those people ( a certain well known someone) that insist that you should not invest in Chicago multi-family. Granted Chicago is a big city with varying levels of opportunity depending on neighborhood, but just wanted to get some inside insight! Thanks.

Robert Posta · Answer

Posting to add myself to the topic.

Also interested in this topic. I am not looking to hack. Purely investment.

Clarence Watkins · Answer

@Justin Galante Living in your purchased multi-family is “Owner Occupied.” House-hacking a multi-family is more like you sharing one of the apartments of a 4-flat with someone else and sharing the rent cost. Both may be of interest to you.

Clarence Watkins · Answer

@Frank S. I agree that there are areas of Chicago where house-hacking may not make a lot of sense, but on the other hand, I think there are areas in the Chicago Metropolitan area where house-hacking may make sense.  Thanks.

Best Chicago Neighborhoods to Buy Mulitfamily?

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