Neighborhoods
Is it the hot new spot, is it about to be? What are other investors charging for a similar product? Does the location justify the price?
Property Taxes
As an investor you should know that property taxes are not standard across the board, and since you're planning to make money from rent, you want to be aware of how much you will be losing to taxes.
Schools
If your tenants have or are planning to have children, they will need a place near a good quality school as it can affect the value of your investment.
Job Market
Locations with growing employment opportunities tend to attract more people – meaning more tenants. Are new companies moving to the area, is a major corporation building a new office in the area, walking to work is important to some. With all the positivies, you should also be aware of the negatives that come along with it.
Amenities
Public transit, grocery stores, gyms, movies, parks, upcoming projects in the area, PARKING! All of these things can be what drives the rental prices to be a more than opportune investment.
Building Permits and Future Development
Chicago never stops changing, an empty lot can become a high rise in the blink of an eye. The empty warehouse down the street is now a modern loft style industrial office space. At the same time you need to be aware of new developments that could hurt the price of surrounding properties from such things as, causing the loss of an activity-friendly green space, additional new housing could also provide competition for your renters.
Number of Listings and Vacancies
Is there an abundance of listings and vacancies? If so why?? This can either signal a seasonal cycle or a neighborhood that has completely changed. Its good to figure this out why BEFORE you buy in. While low vacancy rates allow investors to raise rental rates, high vacancy rates force investors to lower rents in order to avoid vacancy and overall loss.
Rents
Whats the average rental rate, not what you see some guy asking for on craigslist and all those other sites, but the real rental rate. What people are willing to pay based on the surrounding market and growth of the neighborhood. The big catch, is it enough to cover expenses, mortgage, insurance, HOA, etc.
Natural Disasters
Insurance is another expense that you will have to subtract from your investment, so it is good to know just how much you will need to carry. If an area is prone to flooding or any other disasters, you should know ahead of time.