I have seen a few listings around Chicago and it seems to me your real estate is very reasonable. Toronto has had a good run for 20 years now and I am thinking I should try a few other areas. I have a building for sale here that I expect to sell in the new year.
I have a contact in Chicago and that is why I thought of your city. He is someone who could keep an eye on things for me but first maybe you can tell me what is possible.
What I saw – 6 plex with an upside (a 7th apartment unfinished). $430,000. Lower south side? or south side? not sure. It looks pretty clean but rents look to be less in that area. Are there areas that are up and coming for instance?
What kind of returns can I expect? Is 25% down enough? Commercial interest rate or residential interest? Up here anything over 6 apartments is harder to finance and requires more down payment and a higher commercial bank rate.
I would need to pay a property manager.
I see returns (cap rates) of 10%. Are those true? Are they including “everything”. Cap rates in Toronto are 4% or less here.
I would be buying for long term and it would need to be mostly finished. I am a builder and contractor here in Toronto so some work on a building would be possible – just not preferred.
I can talk on the phone – my cell is listed – or email is easy.