3 Reasons to Invest in Multi-Family Housing in Chicago

Multi-Family housing is a great option for people looking to invest in their first income generating property, or for seasoned investors to expand their portfolio of rental homes. There are many benefits to investing in multi-family real estate, including tax breaks, high volume cash flow, and attractive loan terms. Below are some key reasons why investing in a multi-family housing property is a wise choice.

Steady Flow of Cash: A big benefit of investing in multi-family housing is that the buildings will have multiple units that all provide a steady monthly income. This consistent cash flow comes from the tenants and is secured by a long-term lease. An owner can also provide additional things on-site to generate more cash, such as, vending machines, washer/dryers, etc.

Long-Term Value: The type of real estate a person owns dictates the rate at which the value grows. Multi-family rental properties are usually in high demand, therefore they can provide a peak rental rate especially if the rental market in the area grows extremely hot. In addition to the maximum rental revenue, the property itself increases in value year over year. Any updates or improvements also increase the value and will positively impact your return.

Easier Property Management: If you're an investor, owning a property with multiple units in one location may be much easier that managing a portfolio of single-family homes spread out over a large area. As an owner, you can elect to live on-site, manage the property yourself, or utilize a management company. All of those options are made easier and more affordable by having multiple units within one location. The managing of renovations is easier and also benefit multiple units due to units within a multi-family structure sharing common walls, roofs, HVAC equipment, amenities, etc.