Are you wondering if now's the right time to buy investment property in Chicago? One thing's for sure - the job market is buoyant. And where there are workers, there'll always be demand for rental property.
How can you make a Chicago real estate investment and come out a winner? What crucial tips do you need to keep in mind if you're a new real estate investor?
Join us as we share 5 tips for buying investment property in Chicago.
1. Do the Math
Buying investment property in Chicago is about way more than the list price. It's about way more than just being able to afford the mortgage repayments as well.
Before you even think about buying an investment property in Chicago, you need to crunch the numbers. All of them!
That includes seemingly insignificant things like taxes, insurances, condo charges, maintenance, and utilities. You need to sit down, do your homework and crunch those numbers. Remember, if you have periods without a tenant, you need to pay for all of these out of your own pocket.
2. Location, Location, Location
Like every city the world over, Chicago has some parts that are more desirable than others. Who is your target market? What parts of town appeal to them?
This is a decision that needs to be made based on careful research. Unlike buying a home to live in yourself, this is a head decision. Don't let emotional factors cloud your judgment.
Generally, the best areas to invest in allow easy access to downtown Chicago while retaining a suburban feel. Rogers Park, Edgewater, and Pilsen should all be on your list to check out.
3. Don't Bite Off More Than You Can Chew
It's tempting to dream of buying the worst house on the best street. Doing a total reno and selling it for a small fortune. The fact is, even for the most seasoned real estate investor, this is hard to pull off.
Your first Chicago real estate investment should be something modest. Something affordable that needs only cosmetic work. A sensible, sound investment.
4. Know the Law
The world of Chicago property management is governed by Illinois landlord-tenant law. From property marketing in Chicago to lawful tenant screening, you need to know the law. It's super important to understand both your rights and your responsibilities.
It's also very important to follow the law carefully when drafting your lease. If you are ever in the unfortunate position of needing to evict someone, follow it to the letter.
If you do not follow the law, you could end up being sued yourself.
5. Place Your Investment Property in Chicago in Safe Hands
Successful Chicago property management involves a lot. There's property marketing, tenant screening, lease drafting, arranging maintenance. And that's just for starters!
If you're planning on buying an investment property in Chicago, don't go it alone. Leave property management to the professionals, by choosing an experienced local firm.
Let Home River Group Manage Your Chicago Rental
Buying an investment property in Chicago could be a great financial move. Buy smart and manage it well, and it could provide a steady income for years to come.
At Chicago Home River Group, our team is dedicated to helping you maximize your Chicago real estate investment. We can handle everything from property marketing to maintenance.
Learn more about our services and contact us to discuss how we can help you.
