2 Flat Building for Sale in South Side Chicago

2 and 4 flats make up 26% of Chicago’s housing stock. A 2 flat building for sale in South Side Chicago can be a great investment opportunity. For more than a century, 2 flats have been a reliable source of rental income for owner-occupants and investors.

Learn more about 2 flats in Chicago and why one of these iconic buildings might be the right opportunity for you.

Why Choose a 2 Flat Building?

A 2 flat is a two-story building with one apartment taking up each floor. 2 flats are distinctive to Chicago and form a rich part of the city’s history.

Most 2 flats were built between 1900 and 1920. A wave of new immigrants needed housing, and 2-flats provided a popular solution. The architecture has several distinctive features including:

• Brick or stone facades
• A front porch
• Large bay windows facing the street
• Small passages on the sides that separate it from neighboring buildings

These buildings are full of character. They’re also very practical. They’re ideal for their original purpose, which was to live in one apartment and rent out the other one.

They’re also a good investment opportunity if you choose to rent out both units.

Investing in a 2 Flat Building for Sale in South Side Chicago

Multi-family housing like a 2 flat is a good investment opportunity for several reasons. Living in one unit and renting the other one gives you monthly cash flow from the rental. You can often get better financing terms than you would for a property that was strictly an investment.

A 2 flat building can be a good solution if you have adult children or parents living with you. A 2 flat keeps everyone under the same roof but with more independence and privacy.

Even if you don’t live in the 2 flat building, your financing terms will probably be better than for a single-family home. Lenders consider the income from apartments to be more stable. Multi-unit buildings like 2-flats are a good way to grow your investment portfolio.

Some investors choose to convert the 2 flat building into a single-family home to sell or rent. This can be a good investment strategy depending on the neighborhood the property is in.

Vacant, Abandoned, and Foreclosed 2 Flats

The owners of 2 flats tend to be more vulnerable to economic crises like the Great Recession and the COVID-19 pandemic. A vacant, abandoned, or foreclosed property can be significantly less expensive to buy. These properties come with some challenges as well.

A vacant 2 flat is a property that isn’t occupied. An abandoned 2 flat is a vacant property that’s unoccupied because of factors that include:

• Bankruptcy
• Foreclosure
• Financial or legal reasons

Foreclosure happens when a borrower fails to make mortgage payments. The lender repossesses and sells the property. Sometimes homeowners will simply walk away from a home.

Benefits of Buying a Distressed Property

The bargain price is the main advantage of buying abandoned houses. A lower purchase price means you’ll have a lower mortgage payment. Renovating the property can bring it up to market value or higher, which gives you a higher return when you sell it.

You may have less competition from other potential buyers who prefer a move-in-ready property.

Challenges of Buying a Distressed Property

Determining if a property is truly abandoned can be difficult. You may need a detailed title search to identify the current owner.

Vacant and foreclosed properties often need maintenance and repairs. Deferred maintenance, repairs, and renovation often have significant costs associated with them. An expert opinion on the potential defects in the 2 flat is even more important than for standard real estate transactions.

Choosing a South Side Neighborhood

South Side Chicago has several neighborhoods with opportunities for buying investment properties. You can often find 2 flats in South Side neighborhoods for a lower price because they’re vacant or abandoned homes. Buying one of these properties in a neighborhood with growth potential can be a smart investment.

South Shore

South Shore is one of the most active neighborhoods on the South Side. It’s known for strong cash flow in rental income.

Owners of many of the vintage buildings in South Shore have renovated them over the last few years. This has created strong appreciation in property values and rents.

Woodlawn

Woodlawn has seen sharply increasing property values and rents the last few years. The neighborhood has a mix of single-family homes, condos, and apartments. This creates a greater feeling of living in a community that many people value.

The Obama Presidential Center will be located on the east side of Woodlawn. The rapid growth and development in nearby Hyde Park, home to the University of Chicago, has fueled growth in Woodlawn as well.

Washington Park

Washington Park may still have somewhat of a gritty reputation, but it has great potential. If you’re looking for a neighborhood to invest in before it really heats up, Washington Park could be a good choice.

Washington Park is beginning to benefit from the growth in nearby Woodlawn and Hyde Park. The neighborhood has easy access to public transportation and the Dan Ryan Expressway. Washington Park also has the large, beautiful park that gives the neighborhood its name.

Englewood

Englewood suffers from a bad reputation. However, recent development projects have brought higher-end retail to the area. Retail is traditionally an indicator for multi-family growth. The rebuilt Kennedy King College and a new STEM high school are other projects having a positive impact.

Englewood properties are significantly less expensive than in many other neighborhoods. This makes it an especially attractive opportunity for new investors. The growth potential is high.

Finding a 2 Flat Building for Sale in South Side Chicago

Finding a 2 flat building for sale in South Side Chicago isn’t the problem. Finding the right opportunity is the key.

You need a property that fits your budget and investment goals. If you’re planning to live in one of the units, you want to be in a neighborhood that feels like home.

URB Chicago has been helping homeowners and investors find the right property since 1986. Our inventory of 2 flats for sale includes vacant and abandoned homes as well as foreclosures. You can find an affordable 2 flat building with the potential for growth.

Contact us today to find the 2 flat you’ve been looking for.