Investing in little village

[Ian Rowland]

What is everyone’s opinion on investing in Little Village? Does it look like it could be a nice area like Pilsen? 

[Frank S.]

I own units in the area. I would buy more if it wasn't ridiculously overpriced,  see below 

Not gentrifying. Strong Mexican culture makes it unnecessary. 

Not Pilsen, it will never be.

Rent caps at $800/$900 because competition is against $500s/$600s

Currently grossly overpriced. 

Cap rates are too low

Capex are absurdly high. Deferred maintenance is ubiquitous.

Wait until people buying now foreclose in  4 years. 

Gangs are very strong. You need to know the area very well.

There may be some nuggets in the market,   but you will face fierce competition. 

Everything is hot now.  Buying the cheapest options doesn't mean they are good options. 

Good luck