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Old 01-07-2012, 11:59 PM
 
829 posts, read 1,739,542 times
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When was the last time some of you have actually even driven through calumet city. I enjoy shopping in calumet city. It's the heaviest retail area and the most convenient area to shop at south of chicago. There is a ton of places to to shop and not including river oaks mall. None of that looks run down at all. Half the stores out there are fairly new and they are constantly still building stuff. I would actually describe the retail in calumet city as thriving. I would personally recommend that some of you actually go shopping in calumet city in the evening on the weekend. And take a good look at the kind of people that you actually see out shopping.
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Old 01-09-2012, 02:07 AM
 
Location: South Chicagoland
4,111 posts, read 7,382,982 times
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Quote:
Originally Posted by allen2323 View Post
When was the last time some of you have actually even driven through calumet city. I enjoy shopping in calumet city. It's the heaviest retail area and the most convenient area to shop at south of chicago. There is a ton of places to to shop and not including river oaks mall. None of that looks run down at all. Half the stores out there are fairly new and they are constantly still building stuff. I would actually describe the retail in calumet city as thriving. I would personally recommend that some of you actually go shopping in calumet city in the evening on the weekend. And take a good look at the kind of people that you actually see out shopping.
Thanks, Allen! This is why you were always one of my favorite posters..

Yes, Calumet City is home to a thriving retail area. People from all over the southland travel to it to shop. Many new stores and whatnot. It isn't blighted at all.. These statements are based on reality though. Some of the neighorhoods aren't too great. But to describe Cal City as a big blighted city and hit rock bottom is wrong. And this isn't just my opinion. When a town has the thriving bussiness district that Cal City has, it hasn't hit "rock bottom". This is false like 1 +1 + 3. I also suggest you people come down sometime.
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Old 01-10-2012, 08:16 AM
 
829 posts, read 1,739,542 times
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Cal city is mostly a stable mixed income community that has a moderate level of crime but is relatively safe considering it borders chicago. It's also important to point out that calumet city is not your typical out in the middle of nowhere suburban community. And neither is neighboring south holland, or dolton. These areas are all in immediate proximty to chicago and that plays a big role in whether or not you will find these areas to be desirable. The housing stock in cal city is largely made up of apartments, co-op townhouses, and condos. Over 40 percent of the residents living in calumet city rent. There are some stable single family home areas within cal city if you know where to look. Even some newer homes and townhouses.

The large developement of Co-op townhouses accross the street from river oaks mall are small modest 2 bedrooms with a basement that attract a lot of young families. It has a community swimming pool and rec center. The community is very well kept. Calumet city is known more for having the largest retail area south of chicago more than anything. The higher end homes in the area are typically all in neighboring south holland, parts of lansing, and lynwood. Dolton has more to offer on the affordable single family home end than cal city does.

Last edited by allen2323; 01-10-2012 at 08:58 AM..
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Old 01-10-2012, 09:04 AM
 
28,394 posts, read 68,279,810 times
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The house the OP linked to was across from a used car lot and surrounded by vacant fields. I suspect you could do OK with a medium sized multi-family in a part of CalCity that has decent demand but when you see a SFH priced that far down it is a strong indication that there is not going to much demand from any kind of a decent tenant...

Even if you were a speculator interested in redeveloping the site I doubt you could afford to change the use / property classification and those under utilized car lots (the result of consolidation / brand elimination that the car makers are still facing...) means that there are lots of alternative parcels near by.
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Old 01-10-2012, 09:10 AM
 
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There are currently a lot of single family home foreclosures in cal city. Most are being sold fairly quickly at those prices. The cheap ones in good condition generally do not last very long. As far as the demand for rentals in cal city. You would have no problem whats so ever renting out a unit in cal city. After all over 40 percent of residents in cal city are renting, so obviously a lot of landlords find that area to be desirable for investment. It wouldn't take longer than a week or two if you list it in the paper and the property is in good condition. I typically get so many calls for my south suburban properties that after a few days I remove the ads from the paper early. I have never had a problem renting a property in the south suburbs. Or the south side of chicago for that matter. Rental demand is currently very strong.

Last edited by allen2323; 01-10-2012 at 09:30 AM..
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Old 01-10-2012, 10:08 AM
 
Location: Chicago
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I know nothing about Cal City, but suspect you could make the numbers work with a <$35K house in today's strong rental market. There are still plenty of renters (singles, couples, retirees) looking for affordable housing that is commutable to employment areas (e.g. the area retail malls) and many could care less about school district. Yes, schools greatly affect property appreciation, but if one's goal is rental income stream (rather than flipping), then schools matter less.

In particular, there is a need for Section 8 housing in many suburbs (my phones have also been ringing off the hook with these requests) and perhaps this house would fit that market. Of course, that is something the OP would need to research as Section 8 requires a bit more diligence/paperwork from the landlord but a govt. backed pmt. voucher on a <$35k house may work out well. You may want to start by researching the Section 8 rental rates for the area.
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Old 01-10-2012, 10:32 AM
 
829 posts, read 1,739,542 times
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Quote:
Originally Posted by GoCUBS1 View Post
I know nothing about Cal City, but suspect you could make the numbers work with a <$35K house in today's strong rental market. There are still plenty of renters (singles, couples, retirees) looking for affordable housing that is commutable to employment areas (e.g. the area retail malls) and many could care less about school district. Yes, schools greatly affect property appreciation, but if one's goal is rental income stream (rather than flipping), then schools matter less.

In particular, there is a need for Section 8 housing in many suburbs (my phones have also been ringing off the hook with these requests) and perhaps this house would fit that market. Of course, that is something the OP would need to research as Section 8 requires a bit more diligence/paperwork from the landlord but a govt. backed pmt. voucher on a <$35k house may work out well. You may want to start by researching the Section 8 rental rates for the area.

In Cal City, the majority of the renters are not receiving section 8. Most are market rate renters. The median household income in cal city is $45,571 a year which is about $6,000 below the national average. Basically a mixed income area. 12.7 percent of families in cal city have incomes below the poverty rate. The national average is 9.9%. So you have slightly more poverty in the calumet city. But it isn't a high poverty area. The poverty rate in chicago is 21.6%. The poverty rate in the zip code that covers Wicker Park which is the 60622 zipcode has a 22.3 percent poverty rate. And there are some areas of chicago such as the 60621 zipcode that covers englewood that has a poverty rate of 46 percent.

As far as section 8, there property condition requirements are fairly strict. Everything has to be in working order. On the inside and outside of the property. This includes the roof, windows, siding, the cracks in the cement porches, flooring, cabinets, doors, all electrical sockets, the garage, etc. Older properties usually need to be in rehabbed condition to get approved.

Last edited by allen2323; 01-10-2012 at 11:22 AM..
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Old 01-10-2012, 12:30 PM
 
Location: Chicago
5,412 posts, read 8,316,441 times
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Quote:
Originally Posted by allen2323 View Post
In Cal City, the majority of the renters are not receiving section 8. Most are market rate renters. The median household income in cal city is $45,571 a year which is about $6,000 below the national average. Basically a mixed income area. 12.7 percent of families in cal city have incomes below the poverty rate. The national average is 9.9%. So you have slightly more poverty in the calumet city. But it isn't a high poverty area. The poverty rate in chicago is 21.6%. The poverty rate in the zip code that covers Wicker Park which is the 60622 zipcode has a 22.3 percent poverty rate. And there are some areas of chicago such as the 60621 zipcode that covers englewood that has a poverty rate of 46 percent.

As far as section 8, there property condition requirements are fairly strict. Everything has to be in working order. On the inside and outside of the property. This includes the roof, windows, siding, the cracks in the cement porches, flooring, cabinets, doors, all electrical sockets, the garage, etc. Older properties usually need to be in rehabbed condition to get approved.
I don't know all the Sect. 8 specifics, but couldn't an owner accept a Section 8 voucher for this house (e.g. from renters moving out from the city) once the house meets the property condition requirements? Or does Cal City have a limit on Section 8 vouchers accepted?

I can't tell from this listing how much rehab work is necessary. I know Sect. 8 homes with painted concrete floors (no flooring/carpet), painted cheap reused cabinets, and only a few cheap/used appliances - basically rehabbed as cheaply/minimally as possible where the owner tried to make it as indestructible as possible.

This just seems like a very, very strong market based on the desperate phone calls I am getting from people trying to sell me on their Section 8 vouchers. If I had the right lower-end property for it, I would consider it since the rent is covered by the govt. and I am experienced with rehab/maintenance projects as well as tenants. I do understand there can be a lot of hassle with tenants and monthly ppw involved (maybe not suitable for a first time investor), but it could work out well for the right person.
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Old 01-10-2012, 01:02 PM
 
829 posts, read 1,739,542 times
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Quote:
Originally Posted by GoCUBS1 View Post
I don't know all the Sect. 8 specifics, but couldn't an owner accept a Section 8 voucher for this house (e.g. from renters moving out from the city) once the house meets the property condition requirements? Or does Cal City have a limit on Section 8 vouchers accepted?

I can't tell from this listing how much rehab work is necessary. I know Sect. 8 homes with painted concrete floors (no flooring/carpet), painted cheap reused cabinets, and only a few cheap/used appliances - basically rehabbed as cheaply/minimally as possible where the owner tried to make it as indestructible as possible.

This just seems like a very, very strong market based on the desperate phone calls I am getting from people trying to sell me on their Section 8 vouchers. If I had the right lower-end property for it, I would consider it since the rent is covered by the govt. and I am experienced with rehab/maintenance projects as well as tenants. I do understand there can be a lot of hassle with tenants and monthly ppw involved (maybe not suitable for a first time investor), but it could work out well for the right person.
There is a very strong market for section 8 rentals. Particularly single family homes in good condition. Even more so in decent areas. This is for good reason and it is because most landlords do not want to deal with passing the section 8 property inspection. Section 8 tenants are the tenants of last resort for this reason.

Since they are fairly strict with the inspections, this seriously limits where a section 8 voucher holder can move because most landlords don't want to go through the hassle. The landlord has to be willing to meet all of the inspection requirements. Including an annual inspection were they will again ask you to also fix a lot of stuff. Section 8 tenants basically know where to look for properties and landlords who are willing to meet the guidlines. Which are usually in lower income areas where the section 8 rents are much higher than the market rates.

They always find a list of things wrong that you have to fix before you are approved. And then again during the annual inspections. Even if the place looks great. Every electrical socket is checked for electrical polarity. If you have a older fence in your backyard ( like most properties have). You must paint it or stain it, etc. I am sure painted concrete floors in the interior of the house as you described would not make the cut.

Last edited by allen2323; 01-10-2012 at 01:11 PM..
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Old 01-10-2012, 11:44 PM
 
Location: Chicago metro
3,377 posts, read 7,072,824 times
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Quote:
Originally Posted by oldhousegirl View Post
This looks intriguing. From the pics it apears to be maintained and lived in and not vacant. New sump pump = possible water issues. Beginning to look for investment property for rental purposes.

1225 River Dr Calumet City IL - Home For Sale and Real Estate Listing - MLS #07489085 - Realtor.com®
If you're going to invest in Cal City, I'd suggest you stay on the newer section of the city, which almost consist entirely of brick houses(mid 1960s-00s built) and almost literally west of Burnham Greenway(which itself is patches of grassland that seperates the old from the relatively new). Judging by the photo, the house is most likely located in old Cal City.
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