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David From Nj, Home Buyer in Chicago, IL

I may move to Chicago and am would want a house somewhere with good potential for appreciation.. possibly a 2- or 3-family. any thoughts?

Asked by David From Nj, Chicago, IL Tue Mar 20, 2012

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I do a lot of work as a buyer's agent with multi-units (2 family, 3 family, 2 flats, 3 flats, etc), and 'potential for appreciation' will always be speculative, so you have to keep that in mind.

However, for live in owners, in terms of happiness with their neighborhood, minimal out of pocket expenditure (total price), and cap rates (maximized rent per investment) I have found clients most satisfied with, in order, Humboldt Park (the eastern pockets), sections of Logan Square and Avondale, and the eastern sections of Albany Park. Additionally, Bridgeport is providing exceptional value on multi-units right now despite the lower rents.

Chicago is full of incredible neighborhoods that offer something different for everybody, and if you have more money to invest, there are other options that will get you cap rates not much different than the above.

Take the other posters' advice, and rent for a year. You'll realize what works for you. And realize if you're going to become one of those Brick Snobs, and accept all buildings as equals!
0 votes Thank Flag Link Thu Mar 22, 2012
Hello. David. We have a lot of homes that are two to four flats in Chicago. I would like to show you some. Cal 773-627-0019 Thank You.
0 votes Thank Flag Link Wed Mar 21, 2012
When buying multi-family, go with an agent that has a background in development, rehab construction, and or architecture. They can run a cap-rate in their head for you while walking through the property to know if it is a wise investment. 2 and 3 flats are an excellent way to enjoy your home AND investment all in one! Interview a few agents and go with the one you mesh with best. We are no cost to you because we get paid for by the listing brokerage. Let me know if you have any more questions.
Jesse McGrath
Architect, Broker
@properties
312-545-2775
jmcgrath@atproperties.com
http://www.mcgrathresidential.com
0 votes Thank Flag Link Wed Mar 21, 2012
In Chicago they type of property you are referring to is called a two-flat. I have several clients who are looking for two to four flats as well, and so I'm very familiar with what's available.Your price range will impact location. I think mulitifamily buildings in several areas are poised to appreciate. I'd be glad to get your search started by gathering your specs and sending listings to you. Give me a call:

Diane Boyle
773-343-4114
Prudential Rubloff
0 votes Thank Flag Link Wed Mar 21, 2012
Its all relative to where you have to work everyday. Chicago is HUGE! Maybe rent for a year close to your work and see which neighborhoods will best fit your personality and commute!
0 votes Thank Flag Link Tue Mar 20, 2012
Phillip's suggestion is a good one. Unless you are familiar with Chicago coming here from somewhere else and buying something can be tricky. But then again, if you have the money it really doesn't matter. 2-3 flats have taken a huge hit in the bust. Prices in a lot of areas for these buildings are back to reasonable levels. However, appreciation in the short term will be iffy.
0 votes Thank Flag Link Tue Mar 20, 2012
Hi David,

I'm a big fan of Multifamily buildings and consider them a very good investment to buy in today's market, as long as you have the right location.

Most of the areas in Chicago are now affordable, but there's a few neighborhoods I'd like to point out where I've seen that prices have stabilized and demand is on the rise.



Feel free to contact me and we can discuss the options available.

Jose Hernandez, sfr
Coldwell Banker Residential
676 N. Michigan Ave.
312-788-7079
0 votes Thank Flag Link Tue Mar 20, 2012
Who What Where When Why??????

Most areas have gone down in value. You have to find a home that not only offers good potential appreciation but also meets your budgetary abilities.

Work with a Lender and Realtor to assist you.
0 votes Thank Flag Link Tue Mar 20, 2012
It's a huge city and I think you might want to rent a year before taking the plunge. Do you need to be near or have easy access to work? What is your budget? I think you need top speak with an agent or two and get a better feel for things.
0 votes Thank Flag Link Tue Mar 20, 2012
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