Upcoming neighborhoods (Chicago, Lincoln, Sheridan: real estate market, rental, condo)

[Bob0143]

Hi,
I'm wondering what Chicago neighborhoods will be the most likely to bounce back first when things get better. I would like to buy a 2 or 3 flat to live in that would also produce some income. Any thoughts would be appreciated.
TIA

[King0fthehill]

http://www.city-data.com/forum/chica...hborhoods.html

[Banx]

Any neighborhood that's black, latino, or where the minority is a majority. nowadays they're considered "unique" and "hip" and even "chique".

[chet everett]

I am going out on a limb and TRYING to find the good in the above post -- demographic trends and "urban qualities". It makes sense to think of who CHOOSES to live in Chicago and WHY...

The OP is not crazy, owner occupied properties with a unit or two to lease out CAN be very manageable and lucrative. Often if such a property has positive cash flow it affords the owner the opportunity to live very cheaply.

There are a couple of regular posters that are in that situation.

Personally I think it is important to remember that long before the BIG credit crisis caused by mortgage backed securities there were ALL KINDS OF warnings that properties were reaching unsupportable heights. Too much new construction has depressed the real estate markets. Rents are unlikely to move higher, though there ought to be fairly strong uptake of rental units, as the credit crunch and wipe-out of people's capital reserves, together with tightened lending standards means that fewer people are going be in a position to buy...

That said, it is very hard to "pinpoint" the next hot neighborhood. It makes far more sense, especially if you are looking for a place to live, to simply focus of what you as a BUYER can afford and then find the BEST overall situation in terms of LOCATION and condition. Odds are good that if the locations is good, and the value is there for you to buy, it will also be a neighborhood that will be attractive to renters.

While some might argue that the CHEAPEST (or more accurately "most undervalued') part of the City has the greatest potential for large gains, I would argue that there is generally a reason for those low prices. As somebody looking to get started there is not much you individually can do to turn around a whole neighborhood situation. Much better is a situation where you find an area that is overall close to the median price, purchase a property with some condition issues that can be improved without too much cost and then make your money from a combination of rents and appreciation.

This can be done in the current economic situation -- for a building that is discounted enough!

[Lookout Kid]

Well, you may want to start looking in an area that has two- and three-flats in your price range. What is your budget? Adjacency is everything. If you can find something close to a neighborhood that has already "flipped", it's a safer investment. Don't buy something that is completely isolated from other gentrification trends and expect the neighborhood to magically change around you. For instance, the part of Logan Square that has changed most rapidly and dramatically is directly adjacent to Bucktown. The part of Albany Park that has seen the most change is adjacent (across the River) from Lincoln Square. The parts of Uptown that have seen the most improvement are adjacent to Lakeview, Ravenswood, and Edgewater.

I live in Uptown. Barely (I'm only a couple blocks from Lakeview and very close to the lakefront). Did my wife and I move here to get a quick return on our property? No. We moved here because the location and condo unit we purchased fit our needs quite well. We would have lived in Lakeview, but bought in "up and coming" Uptown for budgetary reasons. And with the economy tanking, we're glad to have the $70,000 "Uptown Discount" on our place.

Uptown may one day change, but we're not holding our breath--and we're happy that we are in a part of the neighborhood (southeast Buena Park) where we pefectly happy living here with the current condition of the neighborhood. Friends that bought more in the "heart" of Uptown are having to deal with some serious urban ills that we have entirely avoided. If Uptown froze in it's current condition, we would still feel perfectly safe and happy in our current location. But if things turn for the worse... Well, let's hope that doesn't happen. That hasn't been the trend since the early 90s, but you never know.

[Lookout Kid]

One more thing... You say you're wondering which neighborhoods will "bounce back" first, but I have yet to see any evidence that any decent North Side neighborhoods have taken a terrible hit. Obviously real estate has taken a dive, but neighborhood change hasn't been a significant result of this as far as I can tell. Of all of the North Side neighborhoods with significant gentrification, I think Rogers Park is fairing the most poorly because of empty condo units--but it's still a much safer nicer place than it was even five years ago.

[Avengerfire]

I have seen numerous people sleeping on the streets in doorways around (3900 N.) Broadway and Sheridan the last few days.In the past it was kind of rare and usually one or two people that were seen regularly. Something is happening...

[Banx]

Originally Posted by Avengerfire

I have seen numerous people sleeping on the streets in doorways around (3900 N.) Broadway and Sheridan the last few days.In the past it was kind of rare and usually one or two people that were seen regularly. Something is happening...

You mean that little one to two block slice of ghetto on the northside? Where Hotel Chateau is? True, seems like it could be up and coming, I'm surprise it hasn't been already.

[Lookout Kid]

Originally Posted by Banx

You mean that little one to two block slice of ghetto on the northside? Where Hotel Chateau is? True, seems like it could be up and coming, I'm surprise it hasn't been already.

That area is fine except for two buildings. And it won't change until the hotel Chateau and Gill Park Cooperative are gone. It's amazing what impact two buildings can have on the business strip on Broadway!

I haven't noticed any difference at Hotel Chateau, but I'll keep my eyes open. I go past that place every day, and it's always attracted a bunch of bums laying on the sidewalk across the street. The food pantry seems to be more busy lately. If I were Mark Zipperer or the Starbucks I would be calling the police ten times a day.

[Banx]

Originally Posted by tripleespresso

ha ha.....what a joke.

Someone doesn't read the news. California is basically that, and it's in an official state of "financial crisis" as of this week. Those neighborhoods will be the last to bounce back.

California and Chicago are two very different places, and LA specifically is way more segregated than Chicago. If u drive around any of these areas or take the time to look around them it's pretty obvious. Neighborhoods like Pilsen, Humboldt Park, Cabrini Green projects area, Hyde Park, and even more are going through (or have gone through) a special process known as "gentrification". You would have noticed this if you live in Chicago, where are you from?