Chicago- primary residence (Evanston or Buffalo Grove or ?)

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Chicago- primary residence (Evanston or Buffalo Grove or ?)

Rohan D.
Member since 2019 · 41 posts · 41 votes

Hello Chicago BP community, I am posting this for a friend who is currently not on this forum:

He is currently looking to purchase his first primary residence and is confused between Evanston (apt/condos) vs Buffalo Grove (SFH/townhome).

Price range: 280k-310k

Main Purchase Criteria: his uncertain future so he may move out within a year or two. Hence should have strong/stable rental demand to let the home out on rent without any issues.

Long term (5-8 yrs) appreciation

Here are some of the pros and cons he noticed between Evanston vs Buffalo Grove

Evanston Pros:

1. Closer to work

Evanston Cons:

1. Crazy high HOA (~$500). Uncertainty in "HOA reserves" and price trajectory- what HOA could be 5-6 yrs down the road?

2. Sale prices seem to fluctuate up and down in this area vs steady increasing (over the last decade or so). Why is that?  Folks have sold some apartments at a loss. Something I don't know about this market?

3. Future sale of apt will only attract investors and not primary residence (since its an apt)- is this the right assumption?

Buffalo Grove pros:

1. Good schools

2. How is the rental demand here?

Buffalo Grove cons:

1. Further away from work.

Where do you recommend he look based on his criteria and risk tolerance?

Appreciate your time reading this and helping him with your inputs! Stay safe!

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Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
5y

My 4 unit is in rogers park not too far from Evanston. Evanston you can find multi units that work well or even cheaper houses/condos that cashflow when rented out. I would avoid anything with high association fees in whichever location you choose. There is a much stronger demand from qualified tenants in Evanston then Buffalo Grove. Taxes are such a killer in Buffalo Grove I would not be surprised if there is close to zero appreciation/rent growth over the next decade once rates start to tick up. Evanston also has high taxes but the demand and growth there is more tied to the north side of chicago which is a booming market. 

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    My 4 unit is in rogers park not too far from Evanston. Evanston you can find multi units that work well or even cheaper houses/condos that cashflow when rented out. I would avoid anything with high association fees in whichever location you choose. There is a much stronger demand from qualified tenants in Evanston then Buffalo Grove. Taxes are such a killer in Buffalo Grove I would not be surprised if there is close to zero appreciation/rent growth over the next decade once rates start to tick up. Evanston also has high taxes but the demand and growth there is more tied to the north side of chicago which is a booming market. 

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  • Jonathan KlemmBusiness Member
    Moderator
    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    5y

    @Rohan D. - I am with @Henry Lazerow, I would say Evanston is the better play.  It has a higher rental demand due to the college, having a train, and being close to the lake.

    Given he is going to live it briefly and then move out it definitely makes more sense to find something that will cashflow well even after all the HOA fees. There are also definitely smaller single-family residences (SFR) in Evanston that can help you avoid the HOA fees and probably be a better long-term investment.

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Yes as @Jonathan Klemm mentions the smaller single families in Evanston can be awesome as they rent really high afterwards also, if really want to do it as an investment find one you can renovate to create equity. For finding places with low HOA look at low rise buildings (no elevators) and 2 story townhouses that aren't new construction like townhouses built in the 90's or early 2000's.

    1Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    5y

    @Rohan D. surely there is something in the middle your friend could consider as well? Buffalo Grove and Evanston aren't exactly close together. There could easily be a better option in the middle. 

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