Multi-Family Buildings for Sale in North Suburbs (Evanston, Skokie: real estate, rental)

[IrishIllini]

Hi all,

My parents currently own a modest house in the north suburbs. They're getting older and talking about downsizing since my siblings and I have all moved out. They've floated the idea of maintaining their current home as a rental property and the three of us purchasing a two-flat nearby (2 bedrooms per unit). They would also rent out the second unit in the two-flat. I would mostly deal with the tenants.

They'd like to remain in the near north suburbs (Glenview and Northfield are top prospects), but there are very, very few options. I've expanded the search area to include Skokie, but we want to stay away from the area east of Skokie Boulevard and west of Crawford Avenue. We're also not particularly sold on the neighborhood just north of Oakton Community College. Does anyone have any insight into where we should look to find a reasonably priced building in a safe, walkable area? They'd like to be near shops and restaurants. I was thinking Park Ridge may be an option, but essentially my entire extended family resides there and I think they'd like some breathing room.

FYI, I got a hard no on Evanston, Oak Park, and the City. I'd be open to expanding the search area, but they'd like to stay in suburban Cook/southern Lake.

[4122]

Between Skokie blvd and Crawford is a big area. Skokie is a pretty safe area and I know that whole section cannot be filled with crime. Look at Highland Park, Highwood, Lincolnwood, Niles, and Morton Grove I know Highland Park/Highwood have a good amount of multi family homes for sale and thecother towns should also. Park Ridge is about as expensive as Glenview, maybe even more.

[ToriaT]

Skokie does have some multifamily homes for sale. I lived there for ten years and I liked it. Also check out Lincolnwood. Its very small but you might find something.

[chet everett]

As a former investor in real estate I find it unsuitable as more than a tiny part of retirement income. The biggest factor is, as was recently seen in the collapse, when times are hard and retirees most need the places fully rented out, it is both the WORST time to try to ANY quality tenant OR try to sell the place (let alone dealing the emotions and costs of eviction...) -- The Pitfalls of a Retirement Investment Property - US News

The sad fact is even professional firms that huge REIT holdings often face stiff headwinds when rates rise and can be far too volatile for anyone that depends on consistent income -- http://www.fa-mag.com/news/reits-in-...tion=47&page=2

It would be irresponsible to allow mom & dad to have more than 10% of their total assets in real estate for long term retirement planning.

[ToriaT]

I think its folly to keep the old home as investment property. Fix it up and get it ready to be sold and sell it. I don't think its folly to get a two flat and rent out the upper floor while the parents live on the first floor. I did just that for my son and its working out well, especially if you can find something reasonably priced and can pay cash. Essentially your tenants will be paying through rent, for property taxes and any repairs on the building. You need to work the numbers very carefully, be realistic on what you can do for rent, and get a building that is in good condition and does not require a lot of repair. Still you will be called upon to fix things when they go wrong. I've had this year put a new washer and dryer in. You should also consider charging your parents a modest amount of rent, maybe not market rate but something that fits in with their retirement income, if they don't own the building.

[ToriaT]

Wow I have looked at the prices in Skokie for a two flat and they are sky high. And very high in most other places. Meaning 400-600 k and above. I also looked at Norridge too, not much there, high prices. I bought a very solid vintage two flat two years ago in Berwyn for under 200 k and prices have really gone up there now too, I would not be able to afford buying there now. Good luck on looking. You might consider Forest Park, there seems to be quite an inventory there too and its good for empty nesters as they are not concerned with schools. Might look at Berwyn and Brookfield too.