Buying property in Des Plaines, IL: risks, scams and pitfalls

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90% of the people who have bought our spreadsheet tailored to Des Plaines’ real estate market have asked one of these questions:

- Is Des Plaines really a good place to invest in real estate?

- Is it possible to make a good investment in the Des Plaines market as an amateur?

- What mistakes do beginners often make?

- Are there any common pitfalls everyone should be aware of?

- What kinds of scams should you watch out for?

- Do people keep repeating the same mistakes?

- Are there certain neighborhoods in Des Plaines that come with more risks?

- Are there any red flags or warning signs investors should look for?

- Are dishonest real estate agents or brokers a common issue?

- Is it common for inflated property appraisals to deceive investors?

- How to protect yourself and reduce the risk before investing?

- Does the local legislation actually help protect real estate investors?

- If so, what legal aspects should investors keep in mind to avoid getting trapped?

Let us give you some explanation here.

Is Des Plaines, Illinois a good place to invest in real estate?

Investing in Des Plaines real estate is like navigating a maze with hidden treasures and pitfalls.

The city's proximity to Chicago and O'Hare International Airport makes it an attractive spot for real estate investments. But don’t be fooled—it's not for the faint-hearted, especially if you’re just starting out.

Can you make a good investment here as an amateur? Absolutely, but you need to be smart about it.

The biggest mistakes beginners make are underestimating the impact of local ordinances, overleveraging themselves, and not doing enough homework on the market. You can't just dive in with your eyes closed. Know the market, know the property and get very solid financial projections before putting your money in Des Plaines’ housing market.

Scams are everywhere in this game.

From bogus property listings to appraisals that make you think you’ve struck gold, there are plenty of traps for the unwary. And let’s not even start on the dishonest agents and brokers—yes, they’re out there, ready to take advantage of your inexperience. Always double-check credentials and get second opinions on everything.

One mistake everyone seems to keep making is letting emotions drive their decisions. It’s easy to get swept up in the excitement or panic of the moment, but you need to stay grounded. Stick to your strategy and don’t let anyone pressure you into making snap decisions.

Neighborhoods in Des Plaines can be a mixed bag. Sure, areas like Cumberland and Lake Opeka are hot, but they come with high prices and fierce competition. Areas undergoing redevelopment might seem like a bargain, but they can be volatile, with prices that swing wildly based on market whims.

Red flags? Watch out for properties that seem too good to be true—they probably are. Low prices often hide big problems, whether it's structural issues or a less-than-ideal location.

And if a seller is pushing you to close quickly or bypass inspections, run the other way.

Protecting yourself means doing your homework—extensively. Partner with reputable real estate professionals and get legal advice to understand the local laws. Des Plaines’ floodplain regulations, for instance, are a big deal. They protect the community but can limit your property modifications and increase insurance costs.

Speaking of legislation, it can be a double-edged sword. Local laws can protect you, but they can also tie your hands. Zoning laws, tenant rights, and property taxes are all things you need to be intimately familiar with.

Ignorance isn’t just bliss—it’s expensive.

But no worries, prepared investors can easily optimize their cash flow and rental yield in the Des Plaines property market.

What are the top risks and pitfalls of investing in Des Plaines property?

Investing in Des Plaines, Illinois property involves risks like flood susceptibility, local rent control measures, complex eviction laws, and stringent short-term rental regulations.Investors also face challenges from airport noise, historic building restrictions, economic fluctuations, high property taxes, and limited parking.

Risk Category	Description	Mitigation Strategies
Flood Risk	Des Plaines is prone to flooding, especially near the Des Plaines River.	Invest in flood insurance, elevate structures, and implement flood-proofing measures.
Local Rent Control Measures	Des Plaines has local rent control measures that can limit rent increases for existing tenants.	Understand and comply with local rent control laws, and factor in these impacts when calculating ROI.
Eviction Laws	Illinois has complex eviction laws that can make the eviction process lengthy and costly.	Be fully aware of state and local eviction regulations, consult with an attorney, and document tenant issues thoroughly.
Short-Term Rental Regulations	Des Plaines has regulations on short-term rentals (e.g., Airbnb) including registration requirements and rental caps.	Register with the city, comply with rental caps, and consider the feasibility of short-term rentals in your strategy.
Airport Noise	Proximity to O'Hare International Airport can result in significant noise pollution, affecting tenant satisfaction.	Invest in soundproofing measures and choose properties further from flight paths.
Historic Preservation Laws	Restrictions on modifying historic buildings can limit renovation options and increase costs.	Research historic status before purchasing, and work with preservation authorities to understand allowable changes.
Economic Fluctuations	Economic changes in the region can impact housing demand and rental rates.	Diversify investment portfolios, focus on properties in economically stable areas, and stay informed on local economic trends.
High Property Taxes	Illinois has some of the highest property taxes in the nation, impacting overall investment returns.	Factor in property taxes when calculating ROI, and consider appealing property tax assessments if they seem excessive.
Limited Parking	Limited parking availability can reduce property appeal, especially for tenants with cars.	Invest in properties with dedicated parking spaces or those with good public transportation access.
Zoning and Land Use Regulations	Complex zoning laws can restrict property development and modification options.	Consult with zoning experts, verify property zoning status before purchase, and stay informed on zoning changes.
Public Transit Reliability	Dependence on the reliability of public transit (Metra, Pace) can affect tenant satisfaction and property desirability.	Choose properties near multiple transit options, and consider tenant preferences for walkability and transit access.
Community Activism	Active community groups can oppose certain developments or property uses, affecting project timelines and feasibility.	Engage with community groups early, participate in community meetings, and address concerns proactively.
Public Health Regulations	Stringent public health regulations, especially post-pandemic, can impact property management and tenant interactions.	Stay updated on public health guidelines, implement necessary health measures, and communicate clearly with tenants.
Environmental Regulations	Des Plaines’ environmental laws may require costly upgrades for energy efficiency and waste management.	Invest in eco-friendly upgrades early, take advantage of local incentives, and ensure compliance with regulations.

Typical red flags to identify before buying and renting out in Des Plaines, Illinois

Here's a detailed table of red flags to check before buying and renting out property in Des Plaines, Illinois’s housing market, specific to the city's unique market conditions and regulations.

Red Flag	Details
Flood Zones	Des Plaines is known for its proximity to the Des Plaines River, which has a history of flooding. Check FEMA flood maps and local flood history to assess risk and insurance costs.
Noise Level	Noise can be an issue near O'Hare International Airport and major highways like I-90 and I-294. Visit the property at different times to gauge noise levels.
Proximity to Industrial Areas	Des Plaines has several industrial zones. Properties near these areas may experience higher noise, traffic, and pollution levels, which can affect tenant satisfaction.
Future Development Plans	Research any upcoming developments or infrastructure projects, such as the Des Plaines River Trail expansion or new commercial projects, which could impact property values and rental demand.
School Quality	Investigate the performance of local schools. Areas served by top-rated schools like Cumberland Elementary may attract more families, while other areas may not.
Structural Issues	Older homes in Des Plaines, especially those built before the 1970s, may have structural issues. Inspect for foundational cracks, outdated electrical systems, and roof conditions.
Code Violations	Check for any existing building code violations through the Des Plaines Building Department. Unresolved issues can lead to fines and mandatory repairs.
Asbestos or Lead Paint	Older properties may contain hazardous materials like asbestos or lead paint. Remediation can be costly and should be factored into your investment.
Winter Weather Preparedness	Ensure the property is equipped to handle harsh winter conditions, including proper insulation, heating systems, and snow removal plans.
Mold and Pest Infestations	Inspect for mold and pest issues, which can be common in older homes and damp areas, especially those near the river.
Rent Control Regulations	While Des Plaines does not have strict rent control laws like some cities, it's important to understand local tenant-landlord regulations to avoid legal issues.
Eviction History	Properties with frequent evictions might indicate problematic tenants or property issues. Check the eviction history to gauge potential risks.
Short-Term Rental Restrictions	Des Plaines has specific regulations for short-term rentals. Verify compliance with local laws if planning to use platforms like Airbnb.
Building Permits and Zoning Laws	Confirm that any renovations were done with proper permits. Non-compliance can lead to legal and financial issues.
Property Taxes	Property taxes in Des Plaines can vary. Ensure you understand the current rates and any potential increases due to local measures or reassessments.
Insurance Costs	Factor in the cost of insurance, including flood insurance, which can be significant due to the city's flood history.
HOA Fees and Regulations	If the property is part of an HOA, review the fees, financial health, and any restrictions on renting out units.
Utility Costs and Shared Expenses	Verify whether the property has separate meters or shared expenses, which can impact profitability. Utility costs can vary, especially in older buildings.
Historical Rent Prices and Vacancy Rates	Analyze historical rent prices and vacancy rates specific to the neighborhood. Areas near downtown Des Plaines may have different trends compared to more residential areas.
Tenant Demographics	Research tenant demographics specific to Des Plaines. Areas near the Metra station attract commuters, while other areas may be more family-oriented.
Tenant Screening Processes	Develop a thorough tenant screening process. Illinois has tenant-friendly laws, so it’s crucial to screen for reliability.
Lease Agreement Terms	Ensure your lease agreements are competitive and compliant with local laws, especially regarding security deposits and lease termination provisions.
Rent Payment History and Delinquency Rates	Check the rent payment history and delinquency rates for the property. High delinquency rates can indicate issues with tenant reliability or property management.
Supply and Demand	Analyze the current supply and demand for rental properties in the neighborhood. Areas near the downtown district may have higher demand due to proximity to amenities and transportation.
Economic Factors	Consider economic factors affecting Des Plaines, such as the health of local industries and employment rates, which influence the rental market.
Quality of Property Management Services	Assess the quality and reputation of property management services available in Des Plaines. Poor management can lead to high tenant turnover and maintenance issues.
Maintenance Costs and Contractor Availability	Consider the availability and cost of reliable contractors in Des Plaines. High demand and labor costs can lead to delays and increased expenses, especially during peak times.

Typical scenarios where buying property in Des Plaines is not worth it

Here is what a bad investment in Des Plaines' housing market would look like.

Imagine you’ve just purchased a cozy triplex near the bustling downtown area of Des Plaines, paying a premium due to its proximity to the Metra station and local amenities. Initially, you face unexpected renovation costs for outdated HVAC systems and roof repairs. This unforeseen expense severely impacts your budget.

Finding tenants proves harder than expected. Despite the city's growth, the rental market is highly competitive. After months of vacancy, you lower the rent, which eats into your expected profits.

Des Plaines' local regulations and property tax rates prevent you from raising rents significantly, despite rising maintenance costs. Your expenses climb, but your income remains stagnant.

Then, you face problematic tenants. One tenant consistently delays rent payments, causing cash flow issues. Another disputes minor maintenance requests, leading to costly legal battles with the city's housing authority.

The situation worsens as a major employer in the area downsizes, causing a drop in rental demand. Your property’s value stagnates or even declines, contrary to your expectations of appreciation.

Now, you're stuck with a property that's not delivering returns, struggling with rising expenses, problematic tenants, and a cooling market.

How to minimize risk and maximize profit potential when you buy a property in Des Plaines, Illinois?

To minimize risk and anticipate all possible scenarios in your next Des Plaines property investment, it's crucial to make comprehensive and solid financial projections. Relying on guesswork is not an option in this competitive market—you need precise data and clear analysis.

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