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Updated almost 11 years ago, 03/10/2014
Looking in Chicago
I live in Chicago and am trying to locate a second investment property right now. I'm having a difficult time meeting my criteria. I'm specifically looking for a 4-plex in a relatively decent area where I can get at least a 10% ConC return. Would any of the Chicago investors recommend specific neighborhoods to target?
ha define "relatively decent area"
I'd say, arbitrarily, excluding the bottom quarter of the more crime-filled neighborhoods. Most anywhere outside of the southside and the high-crime pocket on the west side.
Welcome Louis,
Areas of the City I like: (no order)
McKinnely Park
Albany Park
Rogers Park
Arcadia Terrace
Jefferson Park
Humboldt Part - East and West
Avondale
Bridgeport
Even South Evanston
etc, etc,
Deals are out there - happy hunting!
JB
Thanks for the list. I really like Avondale and East Humbolt Park, however I haven't seen any 10% ConC deals there recently. Have you actually seen high cashflowing deals in these areas after expenses are accounted for?
I should also note that I'm using realtor.com as my resource because I don't have access to the MLS. I was debating trying to find a wholesaler to work with because I can't seem to find what I want on realtor.com
Hi Louis
You've mentioned wholesalers several times - but have you reached out to some brokers? If you can find one who specializes in a specific area, they always have their finger on the pulse of the neighborhood and come across deals that don't get posted.
Good luck
Larry
Hi again Louis,
You may not be able to immediately find the returns you're looking for, you have to CREATE the returns you want. How to do that? HERE is a blog post I wrote recently about a deal we did last year.
RRR
Rehab
Rerent
Refinance
Do it the right way and you can pull out most, if not all, of you original capital. You could then have little skin in the game and still have positive cash flow.
This is what some investors consider Infinite Returns.
Good luck!
JB
I appreciate the responses. The broker I bought my first investment property through specializes in the area I'm looking in, however he just sends me automatic MLS listings and has no idea what I'm really looking for from an investment standpoint -- no matter how much I explain. He's more of a salesman than an investor's friend.
You're right, Joshua, that is the plan I should be shooting for. I don't have any rehabbing experience though. I've been looking at homepath homes with that in mind. I have much to study up on!
Thanks again.
I should also note that I don't have nearly enough cash at the moment to be purchasing properties with 100% cash down and then to rehab using cash.
Originally posted by @Joshua Burke:
You may not be able to immediately find the returns you're looking for, you have to CREATE the returns you want. How to do that? HERE is a blog post I wrote recently about a deal we did last year.
RRR
Rehab
Rerent
Refinance
Do it the right way and you can pull out most, if not all, of you original capital. You could then have little skin in the game and still have positive cash flow.
This is what some investors consider Infinite Returns.
Good luck!
JB
I like the framework you have going. I read your blog post, as well. Very informative and I definitely appreciate you including the numbers. It helps a lot to visualize the deal.