Home Buying in Chicago>Question Details

Tom Hong, Home Buyer in Milwaukee, WI

Where is the top three best area for rental properties within the greater Chicago base on ROI ?

Asked by Tom Hong, Milwaukee, WI Fri Dec 14, 2012

I'm looking for MF buliding. What I can get for 100k, 150k, 200k with minimal rehab. Thanks.

Help the community by answering this question:


Riccardo Wardlow’s answer
Hi Tom, You will surely need a good real estate agent to give you listings. Give us a call and we can refer you to several that are terrific. You are going to need to get prequalified first which is where we would come in.

You can call us directly or fill out a secure pre quali application online at our website. Good luck with your properties!

Sean Cochran
1 vote Thank Flag Link Sun Dec 16, 2012
Hello Tom,

The city has plenty of areas with a significant amount of ROI. Some areas are experiencing a lack of well rehabbed properties and a savvy investor can really take advantage of this. Then you have areas that have a high presence of investors. These investors are driving up prices and you have to be willing to make above full price offers and move fast. Our firm handles plenty of REO properties and we are always working with investors. Please feel free to contact me at 773-627-7608 so we can discuss your options further. Good Luck!!!

Jorge Vega
Real Estate Broker
Newman Realty
1 vote Thank Flag Link Sat Dec 15, 2012
Hi Tom,

Will you be self-managing your properties? In general, the worse the area, the higher ROI; but there is much more to consider in the equation. Are you still living in Florida? Are you familiar with Chicago? Feel free to contact me to discuss further.

All the best,

Ivan Sagel
0 votes Thank Flag Link Wed Dec 19, 2012
Dear Tom,

You had many great answers from Brokers. ROI is really going to depend on location with in the city. While many properties can be found in your price range it is really best to familiarize yourself with Chicago with a broker and determine with the amount of money you want to spend are the areas in your price range is where you would like to have you investment property. Firstly, I believe even as an investor you should understand, know, and like the area you are investing. This summer I work with a young investor helping him to rent some of his newly acquired apartments in West Ridge. The first thing out his mouth was he didn't like the area. I can tell you his attitude reflected how he felt and he did very little to improve the apartments. Net result, the apartments sat on the market for a very long time. For the simple improvements I had asked him to do his properties wouldn't have rented quickly. I work with a gentle that owns 20 units in 5701 Sheridan. Great guy. As he says," the way you finish your property will attract the type of renter you want. "

I see your question comes to all of us from Kissimmee FL. How familiar are you with the various neighborhoods is Chicago?

Team up with an agent that will work with you to determine all the factors that are important to you. Remember who you team up with should also have strong knowledge of the rental market.

Best of Luck,

Manuel Brown, Broker
iMove Chicago
0 votes Thank Flag Link Sat Dec 15, 2012
You can find a great deal in many areas of Chicago however you need to have someone here looking that can jump at the chance quickly you would be interested at a great deal along with hundreds of other savvy and aggressive investors.

I would suggest you start to find agents in the area who are already working with some investors and understand the dynamics of grabbing up deals like this for you.

Sohail A. Salahuddin | Founder

Innovative Property Consultants Group | Sales and Leasing


Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes Thank Flag Link Sat Dec 15, 2012
No simple answer, no right answer. You need to engage an experienced professional to even begin to understand the Chicago market.
0 votes Thank Flag Link Fri Dec 14, 2012
What are the areas you are interested?
0 votes Thank Flag Link Fri Dec 14, 2012
Although biased bc i live in the area, Logan Square can have really good returns as rents have gone up and properties remain in the price ranges you listed(if not lower).
0 votes Thank Flag Link Fri Dec 14, 2012
This seemingly simple question actually has a fairly complex answer. First, price should only be important to you in terms of what you can afford. It is unrelated to ROI. Some people think lower price means higher ROI. That is simply wrong.

Second, as with any investment ROI must be evaluated on a risk adjusted basis. I can get you an incredibly high expected ROI by putting you in an incredibly risky investment. The most desirable neighborhoods are going to have the worst ROIs and the converse is also true - in general. There are exceptions. But by and large you will not get high ROIs in Lincoln Park.
Web Reference: http://LucidRealty.com
0 votes Thank Flag Link Fri Dec 14, 2012
We can't comment on a "best" area. What I would do is research an area that is attractive to people looking to rent and where the numbers will work. Get yourself a good agent as well. It's free to use their services!
0 votes Thank Flag Link Fri Dec 14, 2012
Unbelievably (or believably in our case), there are 1342 Two-to-Four unit buildings under $200K are currently listed in the city of Chicago. But Chicago has attracted investors from all over the country. The better properties get snapped up fairly quick. Those that are left, especially at the low end of the price spectrum, are tear-down candidates.

So my recommendation is to align yourself with a local broker who watch for these types of properties and can be your local eyes & ears. They will save you $$$ and from future headaches.

Best of luck,
Web Reference: http://www.MarkBazzetta.com
0 votes Thank Flag Link Fri Dec 14, 2012
At those prices you are just looking for a 2 unit building particularly if you do not want to do much rehab. The ROI would not be very exciting. I do not think there are any particular neighborhoods that are 'best' for that. You need to be on th elookout for the right preoprty in the right area for the right price and that can pop up in many different locations. You can get a better ROI if you are willing to do some work and if you can do it by yourself or for less than retail prices.
0 votes Thank Flag Link Fri Dec 14, 2012
Great ROI's exist west of Western & South of 75th St.

Work with a Realtor to assist in refining your goals and keep you from losing to many $$$.
0 votes Thank Flag Link Fri Dec 14, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer