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Old 11-27-2017, 10:25 PM
 
Location: Taipei
7,773 posts, read 10,073,714 times
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Thoughts on these?

Fuller Park:
https://www.dropbox.com/s/ee1lzh4fbl...chure.pdf?dl=0

Grand Crossing:
https://www.dropbox.com/s/qpopni1t5a...chure.pdf?dl=0
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Old 11-27-2017, 11:05 PM
 
367 posts, read 483,840 times
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Quote:
Originally Posted by projectmaximus View Post

I would need a Police escort to be somewhat comfortable going there for repairs, shoveling snow and dealing with tenent issues.
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Old 11-27-2017, 11:30 PM
 
2,329 posts, read 6,606,671 times
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Quote:
Originally Posted by BRU67 View Post
I'd do North Lawndale, but only east of California. That isn't an overly big area, and competition for property over there is keen right now because everyone thinks that area's going to become the next Logan Square due to Riot Fest and Lagunitas. Property outside that area in NL may as well be bolted to the showroom floor.
everyone thinks everything is the next logan square.

a once a year music festival in a public park, and a massive production brewery tucked away in an industrial zone most people drive to i dont think is as significant as you make it out to be.

anyway, thats a very small segment of the neighborhood that barely falls within the borders. that area is not going to significantly change without massive changes in the rest of NL, and that faces the same challenges EGP does. endless vacant lots, abandonment, disinvestment, and extremely high violent crime rates even by Chicago standards
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Old 11-28-2017, 02:58 AM
 
1,080 posts, read 826,856 times
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Quote:
Originally Posted by via chicago View Post
everyone thinks everything is the next logan square.
McKinley Park is the new Bridgeport is the new Pilsen is the new Logan Square is the new Wicker Park is the new Lincoln Park is the new Naperville. That's pretty much the trajectory.
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Old 11-28-2017, 08:07 AM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,392,609 times
Reputation: 3987
Quote:
Originally Posted by via chicago View Post
everyone thinks everything is the next logan square.

a once a year music festival in a public park, and a massive production brewery tucked away in an industrial zone most people drive to i dont think is as significant as you make it out to be.

anyway, thats a very small segment of the neighborhood that barely falls within the borders. that area is not going to significantly change without massive changes in the rest of NL, and that faces the same challenges EGP does. endless vacant lots, abandonment, disinvestment, and extremely high violent crime rates even by Chicago standards
I am only commenting on what people are buying. That area of North Lawndale is hot right now, as is Little Village east of California. Whether that simply reflects low inventory or whether it will create a self-fulfilling prophecy remains to be seen. But properties that come on the market there do well, and the fact that people are willing to invest their own money into the area is a good sign. I cannot say the same for the rest of North Lawndale and East Garfield Park, where properties just languish.
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Old 11-28-2017, 08:26 AM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,392,609 times
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Quote:
Originally Posted by Fighting Fungus View Post
The people that I know that have made money in real estate (Money meaning they own over 100 units) bought them in the 70's, 80's, 90's. They bought them in the city and primarily in places such Rogers Park, Edgewater, Logan square and Andersonville. When they bought them these were places that you wouldn't want to raise a family in.

Many of these people that I have spoken to said they would not spend more than 60K per unit to make money in todays market.
They speculated and they won. I am sure there are people who speculated in other areas and lost. The word is out. This isn't the 1970s or 1980s, and people are not afraid of big cities anymore. If an area is safe, affordable and convenient people are going to be buying there. 60k a unit? Bleep. People are getting 200k a unit for fixer uppers in West Town, and are asking for that now in east Humboldt Park, LOL!

If you really believe in that 60k creedo you're going to have to grab your sack and invest in East Garfield Park. You will be among the first but that is going to be the only place you're going to meet your 60k unit goal that is even remotely worth considering. And I emphasize the word "remotely." You could also go way west and hope gentrification engulfs the whole city, but I think that's a remote bet, at least in your lifetime.
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Old 11-28-2017, 10:49 AM
 
Location: Taipei
7,773 posts, read 10,073,714 times
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Quote:
Originally Posted by Fighting Fungus View Post
I would need a Police escort to be somewhat comfortable going there for repairs, shoveling snow and dealing with tenent issues.
Well if you cash flow well then your property manager will deal with those things. But your primary point is obviously that it aint a good area and not going to appreciate. That's what I figured. Fuller Park is close to Bronzeville so I thought it might be ok, but looks like crime isnt good in Bronzeville either lol.
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Old 11-28-2017, 11:14 AM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,392,609 times
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Quote:
Originally Posted by projectmaximus View Post
Well if you cash flow well then your property manager will deal with those things. But your primary point is obviously that it aint a good area and not going to appreciate. That's what I figured. Fuller Park is close to Bronzeville so I thought it might be ok, but looks like crime isnt good in Bronzeville either lol.
Most management companies will take 10-15% of your revenue. That sucks but it's a mandatory cost of doing business in the 'hood - unless you want to be dealing with your tenants on a daily basis and trying to get contractors or a handyman to go into that area when something breaks.

If you buy in a nice area and have good tenants you might not need to do this, but you will need to have a good team of contractors available to fix stuff, and a good handyman, which isn't easy to find believe it or not.
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Old 11-28-2017, 11:59 AM
 
28,455 posts, read 84,957,533 times
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I have known quite a few folks that have done pretty well with multi-family rentals but the honest ones will say that the "administration" of such units is a different beast than dealing with the kinds of renters looking for single family detached homes. I much prefer the kinds of renters who look for single family homes in areas with good schools.

Unfortunately the extended period of low interest rates has really shifted the range of affordability for such places in a way that makes it more of a challenge to find places that can profitably rented out. There are all kinds of people that put crazy amounts of time and higher end materials into flips in all kinds of neighborhoods where it is hard to justify such investments but with good timing folks can probably make some profits on such efforts.

The bigger issue is that even with all the "activity" the fact is Chicago is still lagging behind other parts of the country that have a far more robust employment mix -- Housing Prices In Some Big American Cities Are Booming. Why Not Chicago? | Here & Now

If one looks beyond the borders of Chicago the dramatic pace of foreclosure fillings in the South Suburbs really highlights the same problem -- too many people just are not earning enough to support themselves AND shoulder the ridiculous burdens imposed by the still badly broken pension system -- https://www.housingstudies.org/datap...ons/2015/2015/ . It's only a matter of time before the huge weight of such things sinks into Chicago politicians who've been able to "look at all the wonderous things happening in the hot areas" as a distraction...
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Old 11-28-2017, 01:19 PM
 
Location: Chicago, Tri-Taylor
5,014 posts, read 9,392,609 times
Reputation: 3987
Quote:
Originally Posted by chet everett View Post
I have known quite a few folks that have done pretty well with multi-family rentals but the honest ones will say that the "administration" of such units is a different beast than dealing with the kinds of renters looking for single family detached homes. I much prefer the kinds of renters who look for single family homes in areas with good schools.

Unfortunately the extended period of low interest rates has really shifted the range of affordability for such places in a way that makes it more of a challenge to find places that can profitably rented out. There are all kinds of people that put crazy amounts of time and higher end materials into flips in all kinds of neighborhoods where it is hard to justify such investments but with good timing folks can probably make some profits on such efforts.

The bigger issue is that even with all the "activity" the fact is Chicago is still lagging behind other parts of the country that have a far more robust employment mix -- Housing Prices In Some Big American Cities Are Booming. Why Not Chicago? | Here & Now

If one looks beyond the borders of Chicago the dramatic pace of foreclosure fillings in the South Suburbs really highlights the same problem -- too many people just are not earning enough to support themselves AND shoulder the ridiculous burdens imposed by the still badly broken pension system -- https://www.housingstudies.org/datap...ons/2015/2015/ . It's only a matter of time before the huge weight of such things sinks into Chicago politicians who've been able to "look at all the wonderous things happening in the hot areas" as a distraction...
This is why I like the City over the inner ring suburbs. I understand Chicago's pensions are an utter and unspeakable mess but you have a much broader tax base to spread the pain over than most suburbs do. Berwyn, for example, just raised taxes again. And every dime of the increase will go to the underfunded public safety pensions. While it's great they're trying to correct underfunding, they're already at 8k/year on a two flat and over 10k on 3-4 units. So basically, you need one unit just to cover your taxes at current rent rates. Now it's going to go up even more. And unless the demographics suddenly shift upward, landlords are going to be the ones absorbing it, because working families can only afford to pay so much for rent.

It sounds crappy to say you should look just at areas that are underpriced and about to benefit from a booming City economy which is only benefiting a select group of people. People will get displaced in the process. But it's the only sound way to run a small rental property business. And right now that window is pretty narrow. It's like you can find one of those, overpay to be in a "hot" neighborhood and write big checks to the bank each month out of your own pocket to keep the building going in hopes appreciation will continue, or buy into a ghetto and pray it turns around in the future.
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