Tips for Finding the Perfect First Investment Property in Chicago

When it comes to investing, real estate is one of the most lucrative markets that anyone can get into. That’s true, regardless of where you live. Every city in the United States offers something for interested would-be real estate investors. Moreover, it’s one of the oldest and most trusted forms of investment, and that makes perfect sense. After all, everyone needs a place to live, right? How do you know you’re purchasing the best investment property, though? Is there a written rule on what you should or should not purchase? Knowing more about investment properties and how to choose the right one for you can save you a great deal of time, money and headache down the road.

1. Practice good debt management.

Having some amount of debt is both normal and understandable. However, if you are in the process of paying down high-limit consumer cards or other large monthly obligations, then maybe it is not the right time to start thinking about investing. You should consider your finances and be thorough before choosing to go the investment route. Research debt-to-income ratio, and work to adjust that ratio prior than taking on another mortgage.

2. Make Sure That the Property is One You Would Be Proud to Own.

While you might not be the one living in it, is it something that you like? Is it something that you can fix up and potentially sell or rent out? If it requires more repair than you are comfortable doing, then it might not be the right home for you. Consider your experience level with that hammer and nail and then choose a property that’s best suited for that.

3. Fixer Uppers Might Not be Best.

It is definitely tempting to go the fixer-upper route. However, this might be too much work for the first property that you invest in. It is best to start the investment world in a slow and steady manner. This will help you win the race, get your feet wet, and understand a bit more about investment properties and what all they entail.

4. Go For Lower Cost Homes to Start.

When it comes to choosing the perfect investor home, it is best to start out slower and choose a lower cost option. This is important since you want to keep your expenses low on the home. Choosing a home that is too much money can cause problems later on down the road. You don’t want this to happen. Purchase a property that costs slightly less than what you believe to be a comfortable price range for you.

5. Purchase a Property With the Target Tenant in Mind.

Consider the target tenant that is most likely to rent in the area where you hope to buy. Purchase in a great neighborhood, and if possible, go for something that has been updated and is ready to rent out immediately. Remember, you want to choose the simplest option for this first investment. Choosing a home that fits who you want to rent is going to naturally weed out the applicants and get someone that you can feel comfortable living in this first investment property. The location is going to matter, as well as the size and extras that come with the home. Consider all of these aspects based on your ideal tenant and you’ll do fine.

Keeping these tips in mind can help you choose the best rental property for you. Starting off slow is always an ideal way to move forward. You don’t want to get into investing only to find out that you’re over your head. Speak with other investors, a bank and be prepared for the entire process when it comes to purchasing investment properties. You can never be too prepared for any new endeavor you take on.

Are you ready to start shopping for your first rental property in Chicago and the surrounding suburbs? If so, contact me today at (847) 226-8681 to begin exploring your options.