A RE newbie looking to invest in Rockford, IL

[Chidi Dillibe]

Hello all,

I'm an out of state newbie investor looking at a couple properties in Rockford, IL and would like to get some local insight and help before I pull the trigger. The properties i'm looking at look good in the pictures, buying cost and potential cash flow but a part of me is saying..."If it was this easy, EVERYONE would be doing it". The last thing I want to do is go in on a "good looking" deal that local folks here on BP could easily point out red flags in. I would love to be able to speak with a local Rockford, IL investor and share a couple minutes in a phone call. I know people have busy and demanding lives but any potential help or advice is greatly appreciated. Thanks for taking the time to read.

Chidi

[Craig Wilcox]

Hi Chidi,

I am local and can agree with Eddie for the most part.  There is virtually no appreciation in Rockford for several reasons including high property taxes and poor performing schools.  The city is trying to improve but it has been extremely slow with no defined path of progress.

There are a lot of nice looking houses selling at low prices with decent rents but they are low C or D class areas.  There will be a lot of drama and turnover on these properties so the choices for property managers in those areas are slim. 

Where I and other investors have found some value is just north of Rockford in Loves Park and Machesney Park.  There is more demand here because, in general, the schools are better and crime is lower.  It is one of the few areas attracting new business as well.  That demand also pushes the prices up of single families reducing the cash flow.   

Right now, and for the foreseeable future, northern Illinois in a pure cash flow market.  Meaning, don't buy anything unless it provides good cash flow the moment it is rent ready.

Craig