Looking for advice in the Chicago area (3-4 unit MF')

[Trung Hong]

Hi all, I'm looking for help with finding a good realtor in the Chicago area who has a history of selling cash flowing 3-4 unit multifamiles.... Also, Chicago has a handful of neighborhoods, some good, some bad and I would be interested in hearing where a good area in Chicago to find 3-4 unit MF's. I was looking at the following neighborhoods: Little village West town Tri-Taylor Rogers park Wicker park Ukrainian village Any info would be greatly appreciated! Thanks,

[Brian Moore]

@Trung Hong my business invests in small multi-units in Wicker Park, Ukrainian Village and Bucktown (within the West Town and Logan Square neighborhood areas). In these A/B+ markets you are looking at stabilized cap rates in the 5.5-6.5% range. There will be little cash flow on these deals for the first few years due to the low cap rates. Most are purchased for the appreciation due to the high demand for this area by quality tenants (causing low vacancy and strong rent growth). 

If you buy an off-market fixer-upper, you should be able to achieve a 7%+ cap (stabilized NOI after rehab divided by total development costs). If this is the route you want to go, you are welcome to contact me about analyzing potential deals. I may be able to walk you through the deal process from acquisition, financing and rehab through leasing.

Full disclosure: I am an IL Broker but typically only represent my investment company. Lately, I see more good deals than I have time to acquire, and thus would be able to assist others to find good bargains in this tight market.

I would also recommend you contact @Brie Schmidt about the other neighborhoods in which you have interest. She can point you in the direction of higher returns (with somewhat higher risk) in the B/B- markets. She is a broker that works with new multifamily investors like yourself in those neighborhoods. She can quickly help you analyze the deals and find something that will meet your goals (or help you determine if your goals are realistic).

Good luck!