Apartment building owners on Chicago’s North and Northwest sides have not been hit hard by the distressed real estate market.  It is hard to say where prices are today because there is a lack of sellers and more specifically distressed sellers.  Many of the listings are priced at a capitalization rate of 6% which at a minimum indicates a lack of motivated sellers. 

One of the most important things to consider is today’s price compared to tomorrow’s rents.  I recommend that most of my investors have at least a ten year horizon for holding their buildings.  By following this advice, you will very likely see a meaningful increase in your property’s value and cash flow because you are locking in today’s price with your eye on tomorrow’s increasing rents. 

Please remember that when you buy correctly you can start making money from day one, but it will not compare to years nine or ten.