Where in NW suburbs should I buy an investment property to rent? (Arlington Heights: section 8, apartments)

[ig77]

I'd like to buy a 2 BR condo/townhome in the NW suburbs (Schaumburg, Palatine, Hoffman Estates, Arlington Heights, Rolling Meadows, Buffalo Grove). My budget is 100k.

Most of the properties that I find for this budget are:

1. Dundee & Rand Road (subdivisions around Baldwin such as Heritage Manor)
2. At Higgins close to St. Alexius (subdivisions around Huntington Blvd such as Kenilworth, Moonlake)
3. At Bode & Barrington Rd (subdivisions around Knollwood such as Castle Rock, Sheffeld Manor, Weathersfield Lake)
4. In Arlington Heights (East of Dundee & 53)

Which of the ones listed above should I target? I'd like to make sure that I can expect good tenants and the that neighborhood is safe for families.

Any help is appreciated. Thanks!

[4122]

I would look into the condos/townhomes in Arlington Heights. A lot of people like to live there. It's also a great option for families too. You'll definitley get some renters there.

[ig77]

Thanks for the response. Properties in Arlington heights are hard to come by. Few of them that are listed in that price range are usually smaller (< 800 sft) and are much older.

Any thoughts on the first 3 locations?

[wjj]

Originally Posted by ig77

I'd like to buy a 2 BR condo/townhome in the NW suburbs (Schaumburg, Palatine, Hoffman Estates, Arlington Heights, Rolling Meadows, Buffalo Grove). My budget is 100k.

Most of the properties that I find for this budget are:

1. Dundee & Rand Road (subdivisions around Baldwin such as Heritage Manor)
2. At Higgins close to St. Alexius (subdivisions around Huntington Blvd such as Kenilworth, Moonlake)
3. At Bode & Barrington Rd (subdivisions around Knollwood such as Castle Rock, Sheffeld Manor, Weathersfield Lake)
4. In Arlington Heights (East of Dundee & 53)

Which of the ones listed above should I target? I'd like to make sure that I can expect good tenants and the that neighborhood is safe for families.

Any help is appreciated. Thanks!

Do not even think about the Dundee and Rand Road area. Gangs, drugs, crime (as in murder and frequent assaults). Heritage Manor is northeast of there and at one time (like 30 years ago) was a decent place. The problem is the apartments along Baldwin draw a very unsavory crowd and are down right dangerous and just a short stroll from Heritage Manor and the other townhouse type complexes nearby. Rand Grove Village is also nearby and was (not sure if it still is) entirely Section 8 housing and drew a lot of riff raff as well. I certainly would not want to raise a family there. That entire area has really hit the skids (though the single family neighborhood up there seems to be holding its own).

When you ask about Arlington Heights east of 53 and Dundee, are you talking about the area bordering 53 to the east between Dundee and Lake Cook? The condos/apartments on the other side of the big barrier fence? If yes, not a good area at all. Before 53 came through, it was part of the area I discussed above. Cutting it in half did not improve things. If you keep going further east from there though, things change for the better very quickly and become quite nice by the time you get near Arlington Heights Road (e.g., Terramerre). Mostly single family homes once you get east of the big complexes along 53.

[chet everett]

Once upon a time there were some plans for good paying jobs on the edge of Arlington Heights -- Shure (the microphone / electronics firm) built a big facility. They eventually scaled back and then sold the complex to Motorola. Motorola sold that part of their business and it looks like the new owner is scaling back too...

My point is that folks like the OP either do not understand that without good jobs near by the rents suffer. They'll end up having to settle for the lowest rents that the big complex will accept and believe me the REITs that own the big complexes can survive with lower rents than any private property owner...

It is one thing if you can need a place to live and get a three-flat and then rent out the other units. It is a recipe disaster to be an absentee landlord in an area with low demand...

[ig77]

Here's a visual of the properties that I am considering. Which regions in the map can I focus on? Which would be your top properties (has a number associated with it)??

[chet everett]

The fact is that right at the intersection of 53 & 90 there are nice office towers that are vacant and have been for several years now. You'd think with the good access to the whole region there would good demand. Instead the melt down of firms like Motorola and the strong distaste that many young people have for jobs in suburbia make the prospect of good rents illusive.

Factor in our sky high property taxes and the whole idea just seems ludicrous...

[yogao]

I have a rental proper in Deerpath Manor which is right next to Heritage Manor. I rented it out a couple of months ago to a new tenant. Within a week of listing it I had a couple dozen inquiries. I was able to screen and find a quality tenant. It has great access to Lake Cook road and it's only 20-25 minutes from a lot of large corporations in the Deerfield area. I would say either Heritage Manor or the other location in Arlington Heights would be your best bet since they are closer to more employment centers than the Hoffman Estate locations.

[ig77]

I had spoken to my Realtor about Deerpath Manor and his feedback was that the subdivision was in trouble as a lot of home owners hadn't paid the HOA fees for several months and the association had no funds for maintenance. Is that not true?

Any other thoughts based on the map?

[wjj]

7 and 45 are definite "no's". 7 and 45 are what I was pointing out above. 39 is questionable. There are 3 very sketchy complexes in Buffalo Grove and all 3 are near the 39 marker. There is one complex over there that is marginal (Villa Verde), but is generally safe. A lot of elderly in there if it matters.