Top Tips When Buying Property in Chicago

Are you looking to make a Chicago real estate investment? It’s not too late to invest and take advantage of the vibrant and booming real estate sector.

Situated in the State of Illinois, Chicago is also known as the windy city. This is attributed to its geographic location south of Lake Michigan. Chicago has a growing population of both buyers and renters and offers many employment opportunities and attracts thousands of tourists every year. 

Chicago is known for its sporting activities. The city of Chicago has about eight professional sports teams, including the Chicago Cubs, the Chicago Bulls and Chicago Fire F.C., just to a name a few. Additionally, with its theaters and live music venues, Chicago also hosts several film, music and culture festivals.

In terms of housing, Chicago real estate has been doing well in both the city and its surrounding suburbs. It has been in demand by investors and renters. Real estate investments carry far-reaching potential. In the Chicago market, a property investment can create a monthly passive income and grow your personal long-term wealth. 

In this article, we here at MTD Property Management will get into the basics of buying Chicago investment properties. Learning about important real estate investment factors, you can maximize the potential of your investment property purchase.

What is the Chicago Real Estate Market Like?

Purchasing Chicago real estate in a quality neighborhood is a smart decision. By investing in local properties in neighborhoods such as Downtown Chicago, Rogers Park and Lincoln Park, you are able to reap the benefits that come with being a landlord.

Contrary to popular belief, Chicago is a relatively affordable location to invest in when compared to other big cities in the USA. The average sale price of a decent property in a solid Chicago neighborhood is below the national average and the average rent offers a respectable return on investment compared to the median sale price.

Chicago’s real estate market presents a wonderful opportunity for real estate investors. With its ever-growing population, you can be assured of good returns long-term on your Chicago real estate investment. 

Top Tips for Real Estate Investments in Chicago

Tip #1: Determine your Price Range

When looking for Chicago investment properties to buy, it is important to know what you can afford. Determine what you are willing to spend on a for sale property to avoid overspending or getting into unnecessary debt when buying Chicago investment properties.

Knowing your budget and relevant information pertaining to a good location in a quality neighborhood, real estate taxes and home prices will help you pick the best investment property within your price range. There are many types of rental properties available in Chicago. Whether you are looking to buy a mansion, a bungalow or even a condo, you can find all these properties at different price ranges.

Just be sure to buy a rental in a good neighborhood that will be able to offer you a continuous flow of rental income and a solid ROI. We suggest that you speak with a professional to help you carry out such an analysis.

Tip #2: Consider the Demographic

Determine who you are looking to service. As per the Fair Housing Act, however, make sure you aren't discriminating against any prospective tenants. Depending on your demographic and neighborhood, however, you may want to invest in single-family homes instead of, say, an apartment complex.

Among other things, understanding your demographics will be very helpful in determining the type of rental to purchase, the method of advertisement and the rent price. With careful research, we'll show you how to get the most out of your investment and reach many potential tenants.

Knowing your tenant demographics will also allow you to understand the needs of your potential tenants and enable you to better market your property and cater to those needs. If you're not convinced to buy property in Chicago, talk it over with us!

Tip #3: Understand your Legal Obligations

As a landlord, you will have many legal obligations and responsibilities. It is very important to understand the various laws, including the Illinois landlord-tenant laws, eviction process rules, security deposit laws, and so much more!

Knowing and abiding by the laws will help you stay out of legal trouble and save you money.

Tip #4: Hire a Reputable Property Management Company

With over three decades of experience in the industry, MTD is the company to rely on. Our qualified and professional team understands Chicago's strong rental market and can offer you customizable services at an affordable cost, saving you time and money.

At MTD, we can help screen prospective tenants, collect rent, market your unit, conduct repairs and much more! No matter your property management need, we can be there for you!

We manage properties in several in-demand Chicago neighborhoods, including Lincoln Square, Rogers Park, Uptown, Logan Square, North Centre and West Town. 

Tip #5: Calculate the Viability 

This is where real estate investors need bring out their calculator and mathematical skills. To calculate the value and viability of a property, you will need information on your properties' gross potential rent as well as expenses. It's also good to know how much your investment is worth should you decide to sell.

As the bare minimum, the income should surpass the outflows. 

In a Nutshell: Real Estate Investing Tips in Chicago

Chicago is a very promising option when looking for investment properties. With its large population, the demand for rental housing is always high. In addition, the price of selling properties located in Chicago is more affordable compared to other major cities.

We hope the tips above are helpful for you when you are ready to enter the Chicago market and purchase investment properties and start your rental business in Chicago!

If you're wondering which are Chicago's best neighborhoods for real estate investing, read our post here!

If you have more questions, or are seeking additional advice, feel free to reach out to us at MTD Property Management. We also offer top notch services to help you retain tenants, increase your ROI and achieve peace of mind. Contact us or check out our website today!