Chicago Suburbs (Cook County) SFh advice

[Rich Thomas]

Hello, I am currently looking at a portfolio of 18 SFH in south chicago suburbs, mostly in Dolton but also riverdale and calumet city. In doing some research the most obvious issues that I see with the area are: 1. High (ridiculous) tax rates 2. Tenant friendly laws ( nightmare evictions) 3. Declining population With all of these red flags and im sure some other issues the portfolio itself has some VERY strong numbers with a good looking return. The properties in the portfolio have all been rehabbed to some extent, some more than others. The majority are rented to section 8 tenants and with some being ling term tenants... All this being said id love to get some advice from locals that know the area. Right now my biggest concern is the taxes and having a huge jump over the next few years that could kill my cash flow and yearly returns... If the numbers look strong and the properties are in good shape would you still invest ?

[Rick Pinney]

I would look into some of the future plans with section 8 housing. They may end up changing the structure which would require the tenants to pay more and would in the end most likely would require more evictions. The values do not see appreciation like they do a bit more north, yet the price of the home tends to be better. Water issues as well around those areas due to some cities not paying their water bill.