Best Chicago south suburbs for new investor

Member since 2019 · 2 posts · 0 votes

Hi I am looking to invest in Chicago south suburbs. I am a new investor in real esate and looking for properties around 30 to 50k. Any suggestions what suburbs can I pick? Can I hire a company there to takecare of the property? How long it take on average to get the renter in south suburbs?

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Erika Carter

Residential Real Estate Broker · Chicago, IL · Member since 2014 · 155 posts · 42 votes

Watch out for extremely high property tax in the south burbs!!!!!

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Erika Carter
Residential Real Estate Broker · Chicago, IL · Member since 2014 · 155 posts · 42 votes
6y
Watch out for extremely high property tax in the south burbs!!!!!
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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
6y
You are better off just using that 30-50k as a downpayment in Chicago or a nicer lower tax suburb. Many of these south suburb properties are cheap for a reason. They have super high taxes+low quality tenants and sellers are practically giving them away (often with no success so they sit on the market).
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Crystal SmithPro Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
6y
Originally posted by @Saiqal Khan:
Hi I am looking to invest in Chicago south suburbs. I am a new investor in real esate and looking for properties around 30 to 50k. Any suggestions what suburbs can I pick? Can I hire a company there to takecare of the property? How long it take on average to get the renter in south suburbs?

If you purchase a property for only $30K in any Chicago south suburb, it will be a property that will either require a ton of work, which means that $30K isn't enough; or a property that is located in an undesirable location which means it will be more difficult to attract tenants. It doesn't really matter which suburb given your price point. Yes you can hire a company to take care of the property. The amount of time it takes to rent out a property depends on the quality of the property.

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Jake FugmanBusiness Member
Real Estate Broker · Chicago, IL · Member since 2016 · 256 posts · 250 votes
6y
If you are trying to stay under $50k you will have to look in Harvey or surrounding areas and properties will still need some work. Id recommend trying to stretch the budget to $100k and look in Hazle Crest, Chicago Heights, Glenwood, Thorton, or South Holland where you can find 3+ bedroom that only need cosmetic updates but can still rent for $1500+/mo
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Alan Dunlap
Rental Property Investor · Chicago, IL · Member since 2018 · 89 posts · 77 votes
6y
@Saiqal Khan

There are plenty of South Side/South Suburbs/NW Indiana that have 30-50k properties. As other posts mentioned, they may not be worth the effort. Without having a better idea of your goal, our answers may be incomplete.
-Are you trying to wholesale properties? Fix and Flip?
-Are you trying to get cheap properties, fix them up, then rent them out?
-How are you paying for these properties? Cash or financing? At that price point, you may not be able to do conventional financing.
As someone who has South Suburban property, yes, lower priced areas like Riverdale/Markham/Dolton can be block by block (not unlike inside Chicago neighborhoods). Also your taxes can vary. They will be more than Chicago. Sometimes a little, sometimes much more.
I think finding good tenants is an issue for plenty of landlords regardless of area. That being said, if property is rehabbed well, in quiet area, etc. you should be able to find someone.
Also each city has different rules for landlords. Some may not care, others basically require a yearly fee/license paid to the city. I believe South Holland has frozen the number of licenses, so investor would have to buy property from an existing landlord in order to not get in trouble with the city.
Hope this helps.
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Saiqal Khan
OP
Member since 2019 · 2 posts · 0 votes
6y
Thank you everyone.
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Amy Lim
Developer · Los Angeles, CA · Member since 2017 · 12 posts · 6 votes
6y
@Saiqal Khan any luck on locating some properties in Chicago? I am considering that market as well and wondering if you have some insight.
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Kyle D Birch
Rental Property Investor · Chicago, IL · Member since 2019 · 77 posts · 36 votes
6y
@Amy Lim
What and where are you looking? I have had some good luck buying small multi families on the south side of the city limits and finding good cash flow. I have 7 doors and cash flow over $4,000 a month. Of course this took some time and sweat equity, but it’s possible.
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Amy Lim
Developer · Los Angeles, CA · Member since 2017 · 12 posts · 6 votes
6y
@Kyle D Birch I've just started my search and have been looking at Oak Park area as well as the south side. Just curious what type of financing did you utilize on your properties and what specific criteria did you use when choosing your location?

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John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Amy Lim you will have trouble finding any cash flow in Oak Park. If you check out Berwyn, Forest Park or Elmwood Park you will have better luck. The A class neighborhoods here in the Western suburbs don't make much sense, but there are plenty of B and C class areas where you can find really solid cash flowing properties.
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