Patti Pereyra

In Logan Square you definitely want to be closer to transporation -- makes for good resale AND, should you decide to hold the property as an investment down the roadd -- easier to rent.

Logan Square is growing and changing, though there is still plenty of room for growth and patience is required.

As for judging the safety of an area, there are pockets that are better and pockets that are worse. You can be your own best judge simply by exploring the area during different times of the day and night. Note the traffic, the activities, the noise level, etc. Although there are statistics that spout facts about demographics and criminal activity (that you can find in the link provided to you below in another post), "safety" is also about your own personal comfort level with an area. Nobody knows your comfort level better than you. - Tue Apr 29 2008, 09:40

Bottom line: There is a market for every type of property, **as long as it's priced accordingly and appropriately**. Of course if you can afford a higher floor, then buy a higher floor, but if you can't, then what is affordable for you is the right buy for you financially, and will be the right buy for somebody else financially later on down the road.

Just be sure that the garden is marketable, ie, located in a good area with good amenities, doesn't have that "dungeon" feel, and is not in violation of any codes. Good luck! - Tue Apr 29 2008, 09:30

Things to consider when purchasing rental property:

~Proximity to transportation
~Proximity to area amenities (shops, grocery, restaurants)
~Vacancy rates in an area
~Availability of parking

Understand that unless you are paying cash or putting down a huge chunk of change, it is very difficult to get immediate cashflow on a rental property. You may get lucky and find a nicely underpriced property that with a little work would become a solid investment and good rental.

Check out this link for a prior discussion on good areas to buy rentals in Chicago: http://www.trulia.com/voices/Home_Buying/what_is_a_good_area… - Sat Feb 16 2008, 22:24

River North is very popular right now and yes, buyers seek propery in the RN area.

While it's true that prices have adjusted downward in many Chicago areas, as Nick said, many sellers who feel they didn't meet their 'bottom line' with their sale are finding they are able to upgrade in ways they probably would not have been able to 2 years ago, so the 'loss' ends up being a gain. - Sat Feb 16 2008, 22:07

I'm not sure what your question is, really. You start off wondering about the cap rate in the area, then wonder if it's "worth the hassle" to be a landlord, so I'll try to address both.

Regarding cap rate, for a short-cut method, get the the sale price of a recently sold comp, find out the net operating income for that comp (the breakdown is usually on the listing sheet. An agent can look up comps for you on the MLS), then divide the net operating income by the sale price to get cap rate. Do this for several comps to get an idea of the average for the area. You can then divide the net operating income of a property you wish to purchase by the capitalization rate you got from sold comps in order to determine a property value. Conversely, you can multiply the asking price by that same cap rate in order to determine what type of income you would need in order to justify the purchase price.

As for whether or not being a landlord is worth the hassle? Well, it depends. Will you be living on the property? If so, keep in mind that your tenants' needs will often come before your own (if you are a good landlord). This means making sure the property is kept well, that you are available to answer needs, that you are mindful of providing a peaceful environment.... If you are not going to be on the property, these things will all still need to be provided - there or not. This may mean running to the building in the middle of the night when a pipe bursts, or hiring someone to do it if you can't.

If you want to be a good landlord and attract quality tenants, you will have to be willing to do all of this and more.

Purchasing an income property can be an amazing investment with huge potential for appreciation and cashflow (I know, I own and live in a multi-unit and have tenants), you obviously want to study the numbers and also reflect on whether or not you are willing to take on the "hassle'. After all, if even before becoming a landlord you already view being one as a hassle, you may want to reconsider. - Sat Feb 16 2008, 21:56