From the steady stream of rental income you’ll collect from tenants to the various tax benefits you’ll qualify for, there are many advantages to investing in a rental property — especially if you choose a high-demand location like the Windy Cindy. With its abundance of theatres, restaurants, parks, and art galleries, Chicago remains a popular destination for tourists and locals alike. However, the neighbourhood you choose to invest in, as well as the steps you take to manage your rental property, can make a huge difference in whether you’ll find success as a real estate investor. For some tips that will help you to purchase, manage, and protect your first Chicago investment property, read on!
Whether you’re investing in a vacation home for tourists or business travellers, or you’re buying a single- or- multi-unit property for city residents, it’s important to purchase a rental in a desirable area that features plenty of amenities. TurnKey explains that Chicago has several high-demand neighborhoods that may be worth investing in, including Lincoln Park, West Town, Magnificent Mile, and River North. To ensure that you’ll select the right location for your investment property, be sure to do plenty of research before making your purchase.
Moreover, choosing a Chicago neighborhood to invest in isn’t always easy, as the city is home to more than 7,000 restaurants, 600 parks, 307 sports fields, 200 theatres, 29 beaches, and so many other desirable amenities. Whichever neighbourhood you choose, be sure to highlight the rental property’s proximity to local theatres and galleries, world-class dining, high-end shopping centres, and stunning Chicago architecture.
Once you’ve decided on a neighbourhood for your first investment property, it’s time to set a budget, select a property type, and begin your search for a rental home. As you work with an experienced real estate agent to find the right investment property for you and your budget, you’ll need to complete the following steps.
Determine whether you’re going to invest in a vacation home, condo, multi-unit property, or single-family house.
Calculate how much you can afford to spend on your investment property.
Obtain financing for your investment property (unless you’re paying in cash)
Make an offer on a property.
Determine whether you’re going to hire a property manager, contractor, and/or accountant to assist you with your responsibilities.
Insure your investment by purchasing homeowner or landlord insurance coverage.
While Chicago is known for its entertainment, arts, architecture, and fine dining, it’s no secret that crime is quite prevalent in the Windy Cindy. According to recent data, Chicago is home to some of the highest crime rates in the nation, especially violent and property crimes.
Due to Chicago’s high crime rates, you’ll provide prospective tenants with peace of mind that they’ll be safe in your rental property if you install an alarm system, motion-detecting lights, and/or ANSI Grade 1 or 2 deadbolt locks. Depending on the property type, you could also plant thorny bushes or shrubs near ground floor windows to prevent break-ins from occurring
When choosing an effective system for securing your investment property, you’ll want to explore a variety of high- and- low-tech solutions before making a decision. The average cost of installing an alarm system is approximately $675 (or higher if you pay for a monitoring service), but this option could be well worth the initial expense if you’re concerned about crime rates.
Purchasing a rental property in the Windy City can be a great first investment for you, but it’s important to take these factors into consideration and explore all your options before getting started. By choosing a high-demand neighbourhood to invest in, working with the right real estate professionals, and securing your new investment to protect it from theft, burglary, and vandalism, you’ll increase your chances of building wealth for the future and achieving financial success as the owner of a rental property.
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