Choosing the right investment property for sale.
There are a lot of benefits to investing in Chicago property for sale in Chicago’s Southside neighborhoods and Chicago’s Westside neighborhoods: creating a passive income, appreciation, tax benefits, and great returns on investment. But, not all investment properties are the same.
With decades of experience selling distressed investment properties for sale URB Chicago has three tips to consider when buying investment property for sale in Chicago.
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When buying investment property for sale consider:
Location
You’ll hear it anytime you’re shopping for real estate. Buying the right investment property is all about location. But, location does not mean the same thing for each investment property in Chicago, IL. For example, if you are buying commercial real estate as an investment, location is a measurement of traffic passing by your business. So, it is important to consider high-traffic streets, business districts, and local population. If you are buying 2-flat, 3-flat, and 4-flat apartments for rental investment it is important to consider neighborhoods such as Englewood, Roseland, and Back of the Yards which have a high rental population. Additionally, when flipping houses for profit you must balance rehab costs, curb appeal, and a buyer’s market as well as the ability for your property to appreciate or be profitable after rehab.
Understand your budget
When buying investment property for sale in Chicago one of the biggest mistakes we see is that rehabbers and landlords often forget aspects of their budget. Common forgotten costs investment property buyers forget are:
• Unexpected expenses such as unknown foundation and water damage, additional time to complete a project, and sold out resources.
• Resting time. Many rehabbers assume that when the distressed property has been renovated, it will sell immediately. In many cases this is true, though, in many cases it can take weeks or even months to sell your investment property. Don’t forget that when your renovation is complete you will still be responsible for house payments, taxes, and utilities until the property has been sold.
• Seasonal delays and costs are common in Chicago. With challenging winters and hot summers delays are inevitable, as are additional costs that may be due to weather such as flooding, tornados, ice damage and more.
Having a financial strategy that considers all of your expected and unexpected costs will help you plan your project timeline and avoid financial pitfalls that turn your investment property into a money pit.
Maintenance costs
Your maintenance costs will depend on the type of property that you are investing in. When investing in Chicago’s southside and westside neighborhoods, it is important to consider that the cheapest houses for sale and the cheapest properties for sale are likely distressed properties or vacant properties for sale. Due to the age, quality, and rehab improvements you may have more or less maintenance requirements to both keep renters in your property as well as entice renters in a high turnover area.
URB Chicago is one of Cook County, IL’s most trusted sellers of investment properties for sale in Chicago. With thirty years plus of experience in Chicago Area real estate we can help you find investment properties that fit your needs from distressed single family homes for sale to vacant multi-family apartment buildings for sale and more.