Opinions on these neighborhoods for my first place?

Question

I've been following these forums for a while and I'm finally ready to get started. For my first place, I am looking for a single family home or row home that is somewhat of a fixer-upper but doesn't require full gut rehab. I want to buy in a neighborhood that will appreciate significantly over the next 5-10 years. I plan to live there, but may rent it out eventually depending on where life takes me. (As a sidenote, I plan to make a 3 or 4 flat my 2nd purchase, but I want to ease into home ownership and become more experienced with fixing a place up before I become a landlord as well.)

My budget is somewhere between 150-250 depending on the level of reno needed, and realistically I should probably go for somewhere in the 200-225 range with light cosmetic rehab needed. (I can and have done a lot of that stuff already.)

Right now I am looking mainly in these areas:

Hermosa

Tri-Taylor/Near West Side

Humboldt Park/West Humboldt Park

Portage Park/Irving Park

Belmont Cragin/Belmont Gardens

West Humboldt Park seems to be the cheapest, and Portage/Irving the most expensive. However, I could find a place in any of them with enough patience, so I am most concerned with which would be the best investment. Does anyone have any input?

Thanks very much for the opinions and advice!

Jesse M. · Answer

I have a rental (condo) in Old Irving. It hasn't appreciated much since purchased in 09. In fact, it's probably worth less now. Obviously a condo won't appreciate as much as a SFH but you'd also be buying near top market now, so that's something to consider. Also, if you buy something around 225k, you'd be hard-pressed (imo) to get even 1% rent on that.

The neighborhood is poised to explode soon though. CTA/Metra/highway very close, new businesses going up nearby, new condos, and a megaplex type structure at the "real" six corners location.

Jeff Burdick · Answer

I agree that it'll be a challenge to find a 3/4 flat at 200-225 in a good area. I don't know the OP's financial situation, but my thought was that if he had tenants contributing towards his PITI, he'd be able to raise his budget somewhat. You can find a solid fixer-upper 2 flat in places like Irving Park for around 300K if you're willing to do some work.

Brian Morrison · Answer

@Dea Boskovich I ended up with a property in Dunning (pure investment, I'm not living there). I was actually under contract on a property in Hermosa but the deal fell apart for various reasons. Shoot me a message if you'd like more detailed info.

And I misread your initial post about what you were actually up to here, sorry about that!

Dea Boskovich · Answer

@Brian Morrison 200-225 would be my budget for a single family. For a 3 or 4 flat, it would definitely go up, depending on rents in the area.

Did you end up buying in Hermosa? If not, would you mind telling me where you ended up and why?

Thank you for chiming in!

Brian Morrison · Answer

Hi @Dea Boskovich,

I'd like to echo what @Jeff Burdick said. Some neighborhoods in the city vary block to block. I was looking in Hermosa (and other areas) for myself this year and experienced it firsthand. For 200-225, though, it's going to be a challenge to find a 3- or 4-flat that either 1) doesn't require significant work, or 2) is in a great area.

Jeff Burdick · Answer

Welcome Dea,

I would suggest researching these neighborhoods and visiting them at various times...especially since you'll be living there. There are parts of Hermosa and Humboldt Park that I wouldn't want to walk around in at night.

I currently have a 3 flat in Irving Park and feel it is a great neighborhood for appreciation. There is a lot of "spillover" from North Center as people are being priced out of that neighborhood.

Personally, I'd recommend diving in and purchasing a multi-family right off the bat. Having tenants contribute towards your PITI will really increase what you'll be able to afford.

Opinions on these neighborhoods for my first place?

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