Rent in the Suburbs? (Chicago, Oak Park: real estate, foreclosure, rental)

[CWchicago]

I have been looking for real estate investments for the past year. I am looking for some insight on the areas that have strong rental demands.

Need help figuring out where the best area is for rental properties.

I am interested in multi units and SFH's.

1) Can anybody suggest an areas for stong rent demand?

2) What about surroung areas? Forest Park? Oak Park?


Thank you for your help!

[HOWELL_STREET]

... In the future, you MIGHT have several problems with your goals. First, off, in the next year or so, residential properties are going to have a very serious POSSIBILITY of becoming "Upside - Down". And that means that 'one' owes more on 'his' mortgage than the property is currently valued. I.E., it has lost much of its equity.

And second, as more and more single family homes are not 'sold', then the owners of single family homes will place their homes in the 'rental' status. After all, there weren't be any other place for them short of a foreclosure.

IF you are charging somewhere around $1K of rent per month - - but if a single family home for rent is approximately the same price - - which do you think people will go after if they need a roof above their heads?

So be very careful in your decisions / selections / purchases in the upcoming year.

Carter Glass

[Don Vito]

If homevalues drop and people can not pay for their homes, rents will actually go up. As there will be a greater pool of people trying to rent.

[HOWELL_STREET]

... You could be correct, but in my opinion, it is too difficult to 'call'. Everything is related to supply and demand. What happens if there is no 'demand' because we have become stuck in an economic melt down?

Under those conditions, people won't change their housing - - unless something like John Steinbeck's "Grapes of Wrath" happens(?). If nobody is buying or looking for a new rental place, then the prices will come down... because nobody will have money to spend.

Currently, in the U.S.A. many jobs are being sent off - shore and so our employment statistics are becoming worse. Those who do get employment, have to take a reduction in remuneration and perks.

So that is not going to turn around because U.S. manufacturers like the idea of manufacturing off - shore... and the public likes buying off - shore products. So I call that a catch - 22 scenario.

During the Great Depression of 1929 and related to "The Florida Land Boom" (William Frazer's book written circa 1996) - - nobody was buying property in Florida and it became worthless for a time. So to get out such a Florida mess circa 1927 - 1934 many people just left the area and then 'we' became a mobile population similar to the "Grapes of Wrath".

Is this going to happen again? Who knows, but it is a very smart position to consider the possibilites and then plan in advance.

It does not cost 'you' anything as a buyer to do this. I.E. wait a year until we see what happens.

To find out how dangerous we are currently becoming (real estate driven economy / the lack of it) , read the daily business section of the Chicago Tribune Newspaper.

Carter Glass