Investment properties help create wealth and provide an income stream that allows investors to maintain their lifestyle, despite increases in living costs because rental rates tend to keep pace with inflation. While investors may typically envision single-family homes when considering investment properties, nearly half of commercial investments are multi-family properties. As a result of many factors in the real estate market converging, there is currently a boom in multi-family construction, as almost half a million multifamily housing plans got permits in 2021.
In addition to building diversity into your real estate portfolio, multi-family properties offer benefits that single-family properties can’t. Read on as we explore what investors should know about buying multi-family properties in Chicago.
One Transaction
While there are many ways to fund your investment, something you should know about buying multi-family properties in Chicago is the time and cost-saving effect of one transaction to purchase multiple rental units.
Vacancy Impact
Because there is more than one unit, you should know vacancy in one unit will have less impact on your income stream than a single-family property when buying multi-family properties in Chicago.
Location
One thing investors should know about buying multi-family properties in Chicago, the type of property doesn’t change the rules of the real estate game. While investors can improve buildings, you cannot simply pick up a piece of property and relocate it. So when looking at a property, don’t forget that the location must be one of the top determining factors to maintain long-term value in your investments—like those at PIP Realty Group, working with local professional investors means working with a seasoned professional who knows the market and Chicago.
Potential Income
At the bottom of it all, real estate is a numbers game. Investors should perform due diligence to ensure the deal is sound before buying multi-family properties in Chicago. As the professionals at PIP Realty Group, savvy investors use tested formulas to ensure they purchase the property with the lowest risk that offers the highest returns. Let the seasoned professional investors at PIP Realty Group help you build a secure nest egg so you can enjoy your golden years.
Maintenance and Repair Costs Per Unit
Shared maintenance lowers the cost per unit, creating an economy of scale when buying multi-family properties in Chicago, and investors definitely should know about this financial advantage. Remember, when you’ve done the work to find good tenants, you need to keep them happy, so maintenance and repairs must be of high priority to protect your investment when buying multi-family properties in Chicago. Once your holdings reach a scale that allows you to hire a full-service property management team, you should reach out to professionals like the pros at PIP Realty Group, who focus on providing the best experience for your tenants. You can utilize this network of experts to help keep your vacancies and turnovers low.
Financing Options
No matter what size your real estate portfolio, or if you’re a beginner or have a portfolio with vast holdings, investors should know about all financing options when buying multi-family properties in Chicago. From traditional lenders to creative financing options and multiple government programs, many options offer entry into this investment sector for those with low income and investors with vast holdings looking to finance large-scale apartment complexes. Like those at PIP Realty Group, talk with a professional investor for guidance towards financing that best suits your needs.
Management
For those with fewer holdings, a property management team can provide as much or as little assistance as you need, taking on the roles of a landlord that you’d rather have a professional handle. As holdings grow, investors find they being to spend their time managing instead of building wealth, the core goal in the business of real estate investing. Real estate investments, when done right, offer passive income in retirement. Because the quality of tenants you have in place equates to the overall outcome of your business, you must create a systematic approach to screening and never skip on reference checks. Then, if you’re ready to begin spending your time doing the things you most enjoy, you can relax when you work with property management experts, like those at PIP Realty Group.