Class B /C Rental market among 77 communities of Chicago

[Ashwin Abichandani]

Happy New Year All, my first BP post ever

For the background: I have done 1.5 flips ( listed to sell the second one) along with my full-time job in the Chicago market. It has been very challenging managing and not so lucrative for us.

So pivoting and looking into rental strategy either long-term or short-term rentals. Looking for class B or C neighborhoods where I can expect some appreciation and stable cash flow. So I can manage properties along with my full-time job.

Which neighborhoods/communities in Chicago would you recommend as per current market trends and data in 2023?  

[Brennan Crick]

Hello and happy new year, as you know it’s all about numbers in any market so it’s solely based on your buying power in what communities you can buy in. But typically I would start 30 to 40 mins outside the city in the suburban areas. The trend now is how to buy creatively instead of paying high interest rates. A key example would be to find a property who has a fha loan that you can take over (assume the loan) and use your down payment for cash for the difference. but making sure your margin is good enough to cash flow after ALL the expenses has been accounted for. (Maintenance, trash, water, cap-ex, tax’s, PM, and vacancy)