Investing in Chicago real estate is a big step! Before making any purchase, learn about these 7 things investors need to know before buying property in Chicago!
Whether you are a seasoned investor or you are getting ready to make your first purchase, it important to educate yourself as much as possible about investment real estate and what you could potentially be in for. When you work with Luxdoor Invest, we will fully educate you about the property you wish to buy and how to make it profitable for you! Here are just a few things to consider when buying the right investment property for you in Chicago.
# 1 – What’s Your Strategy – Flip, Rent or Hold?
How hands-on do you want to be? Do you have construction experience? These are probably two of the biggest questions you should ask yourself. Some properties will require a lot of your time and energy, while others will be completely hands-off. Are you looking something long-term or something you can renovate and resell? If you want to flip it, make sure you possess the experience to get the project done right. Many amateur DIY’ers will dive head-first into home renovations, only to find themselves having to call in the pros and throwing off their entire budget. Think about what you want from the property now and long-term and buy accordingly.
# 2 – Everything About The Neighborhood
You should visit a neighborhood many times before buying in it. Don’t just drive, get out and take a walk, This will give you the opportunity to slow down and really look around. You might also get the chance to talk to a neighbor or two, helping you get a feel for what the area is really like. And don’t just visit during the day, go by at night too. Is it peaceful and quiet or lively and full of people out and about?
You will obviously also want to know about real estate conditions in the area. What are houses selling for? Renting for? How long are they on the market or sitting vacant? Take into account these numbers before buying your investment property in Chicago.
# 3 – Annual Costs
There are lots of costs that go into owning a home. You have your fixed costs such as the mortgage and homeowners insurance payment. These costs will be the same each month, allowing you to budget. Variable costs will vary and will often be unexpected. These are your repair costs and surprise bill from the city for tree trimming.
# 4 – The Additional Costs
There are even more costs to consider when owning a house. Depending on where you live, there could be an HOA or usage fee. Your homeowner’s insurance could be much higher if you live in a flood-zone, etc.
# 5 – Where They Can Go For Help
When making an investment on a Chicago property, it is imperative you have a good team around you who can help you with the process along the way. Some key people to have in your life are a good accountant, a property wholesaler, an attorney you trust and a network of other investors you can turn to for advice.
# 6 – Where To Find The Best Deals
Often times, some of the best deals can be found from other investors. They will know that you mean business and will also want a quick and easy transaction. Luxdoor Invest is a professional property buyer in Chicago, with continuous great deals in our inventory. By working with a company like us, you will be able to receive a great deal and full transparency in the transaction.
# 7 – The Exit Strategy
As with any investment, you should always have a plan in place for if things start to head south. Can the property be easily resold, or will you have to work to find a buyer? What if you aren’t able to sell it right away? Make sure you have thought about this before making your investment. You’re not likely going to own the house forever, so have a plan in place to sell it when the time is right.