Six benefits of investment properties in Chicago

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Have you ever considered investing in real estate? I love helping clients find investment properties because there are so many benefits! One of our listings, 716 N Willard Ct recently had me thinking about all the positives of investment properties, especially this one! I love this property because it is not only a great first-home option, but it can also be a great “toe dip” into becoming an investor! It is a two-flat, with a gorgeous owner’s unit up top with two beds and one bath, and a rental below (that is currently rented out through April for $1800/month!), with two beds and one bath. 

Facts and figures for 716 N Willard
Willard is currently listed at $649,000. With the current incredibly low interest rate of 3% for a 30 year fixed mortgage, and a 5% down payment, your monthly payment would be $2,599. If you deduct the $1800/month rent, you could live in this beautiful  home for just $799/month + taxes and utilities! 

Here is all the math laid out: 
List price: $649,000

5% down payment: $32,450
Monthly payment with 3% interest rate: $2,599
Monthly rent for lower unit: $1800
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$799/month + taxes and utilities! 

General benefits of investment properties

  1. Plenty of potential renters: The homeownership rate has dropped 9% since 2004 nationwide due to several factors, but two in particular. First, home values have risen faster than incomes. Second, younger people appreciated the flexibility of renting rather than being tied down to a mortgage. All of this adds up to a huge pool of potential renters!

  2. Passive income: Owning an investment property is a great source of passive income, or income that requires relatively little work. There is also the possibility that the income you receive from an investment property will be taxed differently than a paycheck. 

  3. Portfolio diversification: Investment properties are a great way to diversify your portfolio. Diversification provides an added layer of protection against market volatility, and conversely also takes advantage of market upswings. 

  4. Long-term appreciation: The best way to see significant property value appreciation is to hold a property for as long as possible. Renting out a property makes it easier to do this. 

  5. Long-term travel flexibility: With the pandemic, tons of Chicagoans are taking long-term “trips” to other cities, working remotely and trying a change of scenery. Renting gives you the flexibility to be gone for longer, with the rent offsetting the mortgage. 

  6. Market flexibility: In Chicago we know that the market can vary from year to year and season to season. Renting out a property can give you greater flexibility in waiting for the right time to sell since you will have the passive income to offset the mortgage. 

Please contact us for any questions relating to 716 N Willard, or investment properties in general. We would love to help!