Why 2 Flats Make More Sense & How to Get Started
I came across an article on Chicago Magazine’s website that discussed why 2-flats are a great option for investors in comparison to single-family homes. To add to the points made, not only is buying a 2-flat a more viable investment option, but if you are interested in purchasing a personal residence you should consider a 2-flat as well. Renting out the additional unit can reduce your mortgage cost by half, if not more. Below you will find a couple of good points made in the article from an investor’s and home owner’s perspective. And, I’ve provided information on how to go about pin pointing your lucrative 2-flat investment.
Look for Investments Adjacent to Well Developed Neighborhoods
For example, Miro Development recently purchased a 2-Flat adjacent to the Beverly area. Beverly maintains higher median income and more property values in comparison the other Chicago areas. By purchasing properties on the border of well developed areas you benefit from better schools, entertainment and shopping while still keeping more affordable home prices. Additionally, there is a high probability that the development trend in the adjacent neighborhood will transition to your area, which will further increase the value of your home.
Use Other Resources in Addition to the MLS
The best way to get first-hand knowledge on a neighborhood is to actually drive down the block and see for yourself. If you happen to catch someone walking down the street ask them for their thoughts on the area. And, while your driving around take note of any properties that look vacant and relay the address to your broker to see if they can provide additional information.
Get Several Bids from Licensed Contractors Before You Make an Offer
If you’re looking for a low priced property, it will most likely need work. Before you get into “I can fix this myself” mode --- if your not a licensed contractor that has experience rehabbing dilapidated real estate consider getting bids from a few. They will be able to determine modifications that need to be made to ensure that the property meets building code requirements, and provide insight on challenges that may arise, which may not be apparent to the average buyer. You need to know exactly what you’re getting into BEFORE you even consider purchasing a property, so it doesn’t end up back on the market and you don’t throw money down the drain.
If you find yourself getting bogged down after getting started inquiry about options at Miro Development, which give investors and home owners the opportunity to buy newly rehabbed 2 -flats and benefit from property management assistance.