Finding the 1% Rule in Chicago

[Tony Angelos]

Has anyone bought stabilized rentals lately in the Chicago area that comes close to the 1% rule? Curious what your latest numbers look like?

For reference, I've been seeing properties asking around 0.85%- 0.9%. And to provide some context, no, this is not how I evaluate deals, this question is purely for discovery what others in the Chicago market are seeing.

[John Warren]

@Tony Angelos the most recent seven unit I purchased in Berwyn most definitely meets the 1% rule. I have sold several properties recently that do as well, the most recent being in the Little Village neighborhood. I think you can get 1% rule properties still, although the norm is that you have to push the rents to achieve this. 

Of course, the follow up to that is that the 1% rule doesn't always equal cash flow. The Berwyn building won't cash flow yet and I am going to have to push rents to actually see real cash flow there.