Illinois Appreciation and Taxes

[Scott Forney]

Hey Illinois BP investors! My wife and I just got started with our first rental property in a small town in central Illinois. 2 duplexes for about $45k per unit. We're new to the game, so I am soaking up as much knowledge as I can from this site and from books.

As we look towards the future, searching for new investments, I am getting more comfortable analyzing deals. 2 things that I have run into which creates obstacles for investors in IL:

1. Little to no appreciation

2. Insanely high taxes

People are leaving IL at incredible rates, and the state government has not made policies attractive for businesses to come or stay in IL. Thus, making our properties stay at the same price points. In most deals I have analyzed, the sales price of properties in down state IL are the same they were 20 years ago if not lower. I say down state because Chicagoland is it's own world apart.

On top of this, we have to plan on setting enough money aside for the property taxes which is as much as the mortgage payment.

Our cost of entry is low, and it is much easier to buy a property, but so is our neighboring states and your don't have to deal with high taxes and appreciation issue.

I want my money to work for me, and I also want to do a few deals closer to home, to learn and to get more comfortable, so I am reaching out to the local experienced investors here.

How have you overcome these barriers?

Are there areas where properties are appreciating?

People are investing here, so there is a reason. These are obstacles, not road blocks, but I just don't have the years of experience to know what outcomes to look forward too.