Location is often times the most important element to consider for any real estate investment, including multifamily properties. Figuring out what appeals to renters most, what neighborhoods are in high-demand, and what it will take to invest in these areas will all need to part of your strategy. You can search all Chicago Area 2-4 Unit Multi Family Homes Here.
Next you’ll want to meet with a lender to discuss your options. Multifamily homes with up to 4 units are considered residential from a financing standpoint but determining how much you’ll need to borrow and deciding whether or not you’ll be an owner-occupant will be necessary in figuring out what direction to take and also what your interest rate might look like when securing a loan.
Once you’ve targeted several locations and have a better understanding of what you want in terms of size, we’ll run through your finances and check your credit score to see what you can afford to purchase. Unlike with a single-family home, however, you’ll also need to consider rental property operating expenses such as on-going maintenance, higher property taxes, and even marketing for when you need to fill a vacant unit.
After you financing and budget considerations are in place, it’s time to start looking for available multifamily properties. As alluded to above, carefully choosing the right location and staying on budget isn’t always an easy task, so plenty of analysis will be required in making the best possible decision for your unique situation. But as long as you stick to your plan and surround yourself with an experienced team multifamily real estate pros, you’ll be a landlord before you know it.
How do you make an offer on a multifamily property? Consider everything from related rental comps in the area and income potential to real estate taxes and other expenses before coming up with an informal offer price. From there, it’s all about negotiating the best price with the seller and your agent!
The interest rates you see here are an average of the published annual percentage rate with the lowest points from a sampling of major national lenders. Contact us about what your interest rate might look like or click below to learn more about how interest rates are calculated.