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Old 01-04-2016, 03:26 AM
 
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I want to buy property to earn rental yield in Chicago. Any suggestions for good property investments? Range does not matter.
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Old 01-04-2016, 03:47 AM
 
Location: Tricity, PL
61,713 posts, read 87,123,005 times
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Originally Posted by ashimajain View Post
I want to buy property to earn rental yield in Chicago. Any suggestions for good property investments? Range does not matter.
Big apartment complex, parking lots or malls in a prime location are usually a good rental investment...
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Old 01-04-2016, 06:45 AM
 
Location: Below 59th St
672 posts, read 757,535 times
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Originally Posted by ashimajain View Post
I want to buy property to earn rental yield in Chicago. Any suggestions for good property investments? Range does not matter.
Try condo buildings downtown, especially big ones with lots of amenities whose units have assigned car spaces. Decent (not amazing) ROA on those without too much worry about boilers and roofs. Keep an eye on HOA fees. I'd also hold off until later in the year, when you'll know what the property tax bills will be.
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Old 01-04-2016, 07:47 AM
 
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@compactspace: Thanks so much for your response. What do you mean by knowing what the property tax bills will be at the end of the year? Are property tax rates changing later this year?
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Old 01-04-2016, 10:13 AM
 
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Default Oh yes they are!

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Originally Posted by ashimajain View Post
@compactspace: Thanks so much for your response. What do you mean by knowing what the property tax bills will be at the end of the year? Are property tax rates changing later this year?
Rahm's Record $589M Property Tax Hike OK'd, Will Hit Chicagoans Next Summer - Downtown - DNAinfo.com Chicago

Further, given the EXPLOSION of residential properties that are proposed / nearing completion there will likely be extreme negative pressure for landlords -- Reaching for taller buildings, developers invite sky-high risks

Tower Proposed for 451 E. Grand Ave. Would Have 400 Apartments, 100 Condos - Streeterville - DNAinfo.com Chicago
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Old 01-04-2016, 10:39 AM
 
Location: River North, Chicago, Illinois
4,619 posts, read 8,170,326 times
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Originally Posted by ashimajain View Post
I want to buy property to earn rental yield in Chicago. Any suggestions for good property investments? Range does not matter.
Some of the best returns are to buy an older office tower with low occupancy, then boost the occupancy levels by renovating. The renovating adds some risk, but done right you can get a higher-than average return from the rests based on initial outlay, or you can turn around and sell the building for a higher multiple with it fully leased out. You could probably do that as a leveraged deal with a few million of your own money. Unleveraged it might require in the tens of millions.

Last edited by emathias; 01-04-2016 at 10:52 AM..
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Old 01-04-2016, 11:00 AM
 
4,823 posts, read 4,943,728 times
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Originally Posted by ashimajain View Post
@compactspace: Thanks so much for your response. What do you mean by knowing what the property tax bills will be at the end of the year? Are property tax rates changing later this year?
contact a local real estate agent; be careful who you choose though. good luck.
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