Best suburb/city neighborhood to invest in a multi family 2-9 units? (Chicago: to rent, mortgages)

[Fighting Fungus]

I am talking strictly profit based, am not looking to live there. Also I don't want a neighborhood like Englewood were it's dangerous to even go there at noon. I did some research and I think Cicero, Il is a pretty good investment. What is your opinion and any one have any suggestions?

[sfcambridge]

Cicero would not be my first choice.

[Fighting Fungus]

I don't think Cicero is going to appreciate like some other neighborhoods in Chicago, but you could get a 2 flat all brick in solid shape for 180-200k a 3 flat for 200K-220k and a 5-6 flat for 320-350k, the area is not great but at least you can collect rents. It's not like Austin, Englewood or Garfield park.

[SubconsciousMe]

Oak Park, River Forest, Forest Park or Berwyn?

[knitgirl]

Something to consider, normal residential mortgages only go up to a 4 unit property, if you buy anything bigger, you're talking a commercial loan.You'll pay higher interest rates if you buy it as strictly an investment property as compared to one where you live in one of the units. I work in the residential end, so I am unfamiliar with commercial lending, but I think you'll probably pay a higher interest rate. Not sure if 30 year terms are available for that type of property, so before you invest too much time in this idea, do some research.

[NealIRC]

What knitgirl said.

Also, Hispanic places like Little Village, Cicero, and Berwyn, are going to be filled with either peaceful people who don't speak or much English, or bilingual gang members (including old school).

I guess by the time you get as far west as Berwyn, there are some small pockets of White areas.

Note that Little Village is to Hispanic as Englewood is to Black.

You might as well invest in Hispanic neighborhoods further north.

Belmont-Cragin, Hermosa, and such.

[Fighting Fungus]

Originally Posted by knitgirl

Something to consider, normal residential mortgages only go up to a 4 unit property, if you buy anything bigger, you're talking a commercial loan.You'll pay higher interest rates if you buy it as strictly an investment property as compared to one where you live in one of the units. I work in the residential end, so I am unfamiliar with commercial lending, but I think you'll probably pay a higher interest rate. Not sure if 30 year terms are available for that type of property, so before you invest too much time in this idea, do some research.

My dad has bought a 12 unit with in the last 10 years, I will ask him but I know it was a 30 year fixed rate not sure about interest rate.

[Fighting Fungus]

Originally Posted by NealIRC

What knitgirl said.

Also, Hispanic places like Little Village, Cicero, and Berwyn, are going to be filled with either peaceful people who don't speak or much English, or bilingual gang members (including old school).

I guess by the time you get as far west as Berwyn, there are some small pockets of White areas.

Note that Little Village is to Hispanic as Englewood is to Black.

You might as well invest in Hispanic neighborhoods further north.

Belmont-Cragin, Hermosa, and such.

I would prefer Belmont-crag in and hermosa, but it's more expensive. I would not actively manage in a all black neighborhood but I would manage in an all Hispanic neighborhood. I don't want to be in a neighborhood were I don't feel safe at 11am.

[knitgirl]

Originally Posted by Fighting Fungus

My dad has bought a 12 unit with in the last 10 years, I will ask him but I know it was a 30 year fixed rate not sure about interest rate.

Things have changed a TON in the last 10 years.

[Alacran]

Yeah, shoot for Mexican hoods.
Cicero, Little Village, Belmont-C, Hermosa, Maybe Brighton Park, etc

There's always people looking to rent. Try and get families, not gangbangers.

Way cheaper then white neighborhoods, but not as horrible as Black ghettos.

And sorry, I don't know how else to word it.

Hope it doesn't sound racist or anything.