Are there any sleeper areas to invest on the South Side. I'm really interested in investing here as I grew up here but I know the market can be tricky.
The city has so many neighborhoods both good and bad. There is no secret about the crime rates in the city. I would be careful of war zones. Investor entry into these areas is low, but if I can’t get maintenance people to work on the property because of the neighborhood it’s not worth it. I know in some areas we make sure wea are gone by 11:00 am. The average bad element doesn’t like early hours. It’s like a real job. If you grew up there and know the current situation then move ahead with eyes wide open.
Auburn, AL · Member since 2018 · 17 posts · 3 votes
7y
No "sleeper" areas in the south side if you're talking about flipping. Sales appeared to have slowed (slightly), ARV seems to be stabilizing or slightly declining possibly due to the interest rates. You just need to be creative with your approach or strategy.
Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
7y
The biggest three things to worry about if you are wanting to do rentals in Chicago are: the CRLTO, property taxes, neighborhoods. First, Chicago is extremely tenant friendly, so if you are investing in C or D areas which can only attract poorer credit, lower income or subsidized tenants, you WILL (I promise) have problems with getting all your money, property maintenance, and lost rents. These areas host professional tenants who know all the rules, and when all else fails, they will create a code violation and then call the city on you and tie you up in court.
Second, rising property taxes make it difficult to purchase a rental property at a reasonable cost and still have room to charge market rent and make money. A lot of times your rent and capex will have you breaking even, especially on SFRs. To get a decent cash flow you have to buy in areas that are priced lower and taxed lower (areas which haven't started, or will never gentrify). You can get great cash flow, but the flip side is, if you go to your property, you have to be out by 11am.