Becoming a landlord in Chicago can provide you with a steady income, but there are many considerations before you take the first step. One of the biggest may be the factors involved in buying the real estate. At Bradford Miller Law, P.C., we have helped many investors who wish to own rental properties purchase multifamily homes.
Location is an essential element, according to the Chicago Tribune, not only because of the draw for the type of renters you want, but because of the way the neighborhood affects the amount of rent you can ask for. You will also need to compare the costs of similar properties, and not necessarily just the ones nearby.
Although real estate often appreciates over the long term, the current condition of the property may make a difference in whether you attract the right renters. An older home may also require constant attention, which could affect the amount of rent you need in order to break even. In 20 years, as the market appreciates, your investment may pay off, but the expenses at the beginning may not be worth it.
A lender may have more requirements for you than the company would for a person purchasing residential real estate because investment properties tend to be a higher risk. You may have to come up with a larger down payment, and in addition to the other fees associated with buying property, this could involve a serious outlay of cash to get your business off the ground. More information about costs and other matters involving rental properties is available on our web page.