Getting Started in Chicago Investment Properties
For most people who have ever had to deal with a landlord, the job doesn’t exactly seem all that appealing. They field calls about plumbing issues, bug infestations, rent complaints, and on and on. It’s a real estate investment that seriously lacks in glamor, but when it’s done right, your own real estate investment doesn’t have to be anything like that. Rather, it can be quite lucrative, not-so-hands-on, and even enjoyable.
Buying Chicago investment properties can help diversify your existing investment portfolio and provide you with a nice additional stream of income. You just have to know how to get started, where to look and know the level of maintenance that you’re prepared to take on as an investor. So, let’s take a look at two of the easiest and most viable options to get you started.
Rental Properties
Investing in rental properties is probably the first thing that comes to mind when you consider how you might enter into the real estate business. And, it is a great way to get into investing, though with these investments, you can expect to be more hands on. On the plus side, whether you rent the entire property out (just remember to hire a property manager if you don’t want to be fielding tenant calls and work orders), or occupy your investment property, living in one room while renting out the others, they can provide a nice, steady stream of additional income. This setup often covers all of your expenses and brings in extra cash that goes into your pocket each and every month.
Fix & Flip
This investment option is every HGTV lover’s dream come to life, though don’t be fooled. The process isn’t quite as easy as it seems on TV, and there is a much greater element of risk involved in flipping houses. If you’re looking for a real project to work on and don’t mind getting your hands dirty, you might consider purchasing underpriced fixer-upper homes and renovating them. Of course, the key here is to do so as inexpensively as possible so that you can resell the property for a profit.
Investing in fixer-uppers is an option for those who know they can confidently get a return on their investment. For instance, there’s a lot of math behind flipping that requires a very accurate estimate of how much repairs are going to cost. This is often where things can fall apart for inexperienced investors, as their repair costs skyrocket out of range of ever seeing any return once (and if) the sale happens. To ensure that you do come out with cash on the other side, you’ll want to work with an experienced partner or contractor who knows how to estimate and manage these types of projects.
The main thing you must remember going into the world of real estate investment is that you should only ever take on the level risk that you can afford to commit to and lose. So, before you take the plunge, ask yourself what you really want out of your investment, whether that may be immediate cash gratification or a long-term opportunity to expand your investment portfolio. Whatever your goals may be, just keep your eye on the prize, and learn the ways of the industry.
