Dream Town Realty

312.265.8000

Join Dream Town:

or

Join With Email:

By joining you agree to our terms of service.

Chicago Rental Properties

It's all about location, location, location. A beautiful property in the wrong part of town won't be nearly as profitable as a slightly less desirable one that sits in a great part of the city.

Should I Buy an Rental (Investment) Property?

Being a landlord is a business, so you have to think that way. You are investing in a rental property to turn a profit. You'll need to take a hard look at potential revenues and expenses associated with the property. It's not worth buying a rental property if you can't find a way to make it profitable. Here are some things to think about when considering purchasing a real estate property rental.

Thoroughly inspect the property. If it is a multi-unit building, check all the units. Don't just take a look at a representative unit. The rest of the units might not be in the same condition. View the vacancy rate of the building over the past few years. Make sure you leave room in your budget for possible vacancies. Remember that you will also be responsible for building maintenance. Check to see if the building has recently undergone any repairs, or if it is in need of them. The latter could substantially increase how much you have to initially invest into the property.

What Type of Building Styles Should I Consider?

So your becoming a landlord and now you need to figure out the type of building style to pick. It's not always a good idea to buy buildings with unique styles. The layout of the building might not be conducive for maximum occupancy. It's better to stick with conventionally shaped buildings. You should consider properties that you would want to live in.

Should I Buy A Single-Family Home or A Multi Unit Building?

Single family homes appeal to renters because they get more square footage for their money. Since these homes tend to have a slower turnover rate than multi-unit buildings, it will take longer for your initial investment to pay off. On the other hand, if you decide to sell your single-family home, its resale tends to be greater than multi-unit buildings.

Multi-unit buildings offer a faster return on your investment due to multiple renters living in one building. They have much higher turnover rates as opposed to single-family homes. Multi-unit buildings are harder to finance than single-family homes and usually require a minimal down payment of 20%. They tend to be underwritten by relationship-based private lenders. Residential multi-unit buildings of up to 4 units are more "financeable" and may even qualify for FHA type loan products.

Need Expert Help?

Get matched with the right real estate pro! Just provide us with some quick information, and we'll find the Dream Town broker for you.

Get Matched With An Agent

Every Listing in Chicago & the Surrounding Suburbs

Every home in the Chicagoland area is at your fingertips.

Search 35,912 Homes

    More Buying Resources

    As a buyer, you gain exceptional benefits from working with a Dream Town broker that go beyond your home search.

    We’ve assembled a team of Chicago real estate experts who advocate for your interests, offer strong negotiation skills, and make sure that the buying process is not only successful, but as stress-free as possible.

    Get Matched with the Perfect Agent Now

    Tell us a little about yourself so we can match you with the perfect realtor to suit your needs.

      We hate spam and will never sell your email or contact information to anyone.