Chicago/Suburbs, Naperville, Aurora, Racine, Kenosha, Milwaukee??

Question

Where is good to buy, renovate & hold a 2-4 unit building?  I'd consider anything within about an hour drive of Palatine IL (or 1-1/2 hours in the case of Milwaukee if it's a really great deal)  There doesn't seem to be much in my area (prices are pretty high here - would love to keep it under $100K/$140K all in.

Areas I might consider:

Milwaukee (which neighborhoods are up & coming?)

Kenosha WI

Racine WI

Aurora IL

Elgin IL

Chicago (which neighborhoods are up & coming?)

I'd appreciate any input from anyone familiar with any of these areas, positive or negative!

Jonathan Klemm · Answer

@Kristi Wolfe - I think first you need to define your expectations and comfort level.  Meaning are you looking for cash flow, appreciation, flips, etc. and then additionally are you comfortable being 1.5 hours away?  Are you self managing?  Who's placing tenants?  I think with the right team that isn't a problem at all, but everyone has a different comfort level and risk tolerance.

I would definitely consider Milwaukee if you are looking for a stronger cash flow market.  It has very similar metrics and demographics to Chicago, but just smaller in size and less overall appreciation (depending on the neighborhood of course).  If you are looking to build your team up North I would reach out to @Michael Henry or @Marcus Auerbach as far as realtors go.  They are both active investors and know the area extremely well.  If you are looking for a full-time property manager I'd highly recommend @Matt Maurice or if you looking to self manage you should definitely check out the cool platform under my signature - NestEgg.

Also, I saw @Kenneth Garrett mentioned @Joe Mueller, who you should also connect with. Joe is the man of the far NW Chicago suburbs and has his hand in all aspects of real estate (i.e, wholesaling, rehabbing, brokerage, etc.). They hold a meetup over in Algonquin that you should definitely attend. Here's the link: https://www.meetup.com/investor-empowerment-chicago/

Patrice Boenzi · Answer

@Kristi Wolfe I am a Realtor and active investor. If you are looking for a multi-family between $100-$140k, the Aurora and Elgin would be a good starting point. Let me know if you want me to send you what’s out there!

Corina Eufinger · Answer

@Kristi Wolfe consider investing in Beloit, WI.  It has a good amount of properties in your price range and is seeing a resurgence as of late. It's about 1hr15 from Palatine according to Google.

Consider Walkers Square, Century City, and Washington Park as sections of those are part of a TIN neighborhood program in City of Milwaukee right now.

Racine is still an sketchy market IMO. Higher crime but with a couple decent pockets.  Kenosha is good but may be a little overpriced in the duplex and SFR market right now.  It has good employment diversity and lower crime rates than Racine though.

Kenneth Garrett · Answer

@Kristi Wolfe

I invest in lake and mchenry county and southern Wisconsin.  It’s not easy to find properties under or at 100K.  I do think you can find properties for 140,000 all in.  I’ve tried to invest in palatine but I haven’t found a deal that works.  Probably need to look at townhomes in the northeast part of town.

Kenneth Garrett · Answer

@Kristi Wolfe

Joe Mueller.  I can’t send his email.  I’ll pm you his email.

Soh Tanaka · Answer

You can get some in Waukegan/North Chicago area with that price range. I am a broker, so PM me if you want me to feed you the latest listings to you.

John S. · Answer

@Kristi Wolfe if you're willing to travel that far, check out DeKalb & Rockford as well.

Fabricio Kannenberg · Answer

Hi @Kristi Wolfe, I am also looking at Elgin, Geneva and Aurora. My focus is on SFH to Live and Flip. This would be my first property.

@Patrice Boenzi are you familiar with the area? Would be happy to connect and learn more about the area.

@Sean Morrisey Aurora seems to be a good place to live, considering I am looking to Live and Flip. Happy to connect.

Jeremy Holleb · Answer

@Kristi Wolfe RACINE and KENOSHA. I’d love to talk to you about the area! I live in Chicago but invest in Racine and Kenosha.

Mark F. · Answer

@Kristi Wolfe I second the recommendation of @Kenneth Garrett to and @Jonathan Klemm to reach out to @Joe Mueller. I have know Joe for a few years, worked with him on several deals and he runs TANIS Group Realty and they have monthly investor meetings in their Algonquin office.

Chicago/Suburbs, Naperville, Aurora, Racine, Kenosha, Milwaukee??

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