Chicago Suburbs Rental Markets

[Bradley Calvin]

Hello BP! 

I was hoping to start a discussion about the Chicago suburbs in which other investors have had the most success. I'm evaluating properties to purchase and rent out. Some guidance as to which areas to focus on would be of huge help.  

Thanks in advance! 

[Chris T.]

@Bradley Calvin

I have 1 in bloomingdale and 1 in carol stream, and they both rent easily. Instead of looking at specific suburbs, maybe you should look at the following factors 

1. The numbers make sense (double check property taxes)

2. The schools are decent / neighborhood is safe. You can't cash flow in A areas. Most likely B/C+ areas

3. Your property is up to par and presents well. 3/2 with a yard is very attractive.

There are some flood zones in Des Plaines, be careful as you may need to buy flood insurance. Which will throw off your numbers. I consider Des Plaines to be an A/B+ area. So unless you can get a significant discount and/or put down a big down payment for a loan or cash, it's tough to have positive cash flow.

Hanover Park, Elgin, Barlett, Addison, Glendale heights have lower price points of entry for SFH. Of course, there are pockets in Wheeling, Arlington heights, Des Plaines, Lombard, Elk Grove Village, Bloomingdale etc which you can find cash flow positive rentals but have to look a little harder.