There are some investments that just don’t offer good housing rentals from which to invest. Some of these are very risky. One is a real estate but it’s a gamble. Others are more conservative and offer housing options that can work for you.
Some of your best investments need a jump start. Maybe you’ve heard all of the talk about how to earn money in real estate by thinking outside the box. One of those out of the box to purchase and hold opportunities is with housing rentals. Renting out rooms is a great way to turn a profit. But, there are some things to keep in mind.
The two most important pieces of information when considering housing rentals is who is renting the space and how much they are paying. That’s a hard one to determine. Most people aren’t going to give away a 1-bedroom apartment for $1500 a month as their rent payment, but they will be willing to pay more if they get the unit fully furnished with appliances and extra storage.
If you’re looking for housing to rent in Chicago, the best neighborhoods to look into are likely going to be better than those in Jersey City or New York. Both of those cities have seen severe foreclosure problems. In those areas, you may see homes that were once in great condition being torn down to the studs and left to become the property of foreclosure victims. I wouldn’t advise investing in such properties. They typically need some sort of upkeep, and not all rental properties are ready for renovations.
Instead, you may want to invest in Chicago rental properties that are still profitable but only need a little bit of TLC. You can do this by finding out what the property is like now, and what it was like before the owner and tenants became owners. By doing this, you can find a housing property type that will appreciate in value as the neighborhood around it changes over time. As an example, condos have the ability to appreciate quickly because they are often located near amenities like parks and schools.
You don’t have to purchase a property to find this type of investment. In fact, you can use your existing mortgage or credit card for short-term rental payments. This is advantageous if you own a home in Chicago but don’t want to move anytime soon. By using these methods, you’ll be able to turn your house into cash in a relatively short amount of time. The downside is that most of Chicago’s condo units are currently priced at higher prices than normal. However, Wilkoff said he sees a positive condominium market in Chicago through the pandemic.
The biggest problem facing Chicago’s investors right now is finding renters. Tenants make up the majority of renters in any neighborhood, so attracting them has been an ongoing challenge for developers. Wilkoff said there is something uniquely unique about owning a condo in Chicago because it gives investors the ability to create a renter’s association. He explained that when a new tenant moves into a unit with the help of his paying tenants, the association’s duty is to look after that tenant until a new tenant moves in.
Wilkoff also mentioned the benefits of investing in housing rentals as a short-term housing investment. Many investors rent out their homes for short periods of time, such as a month or two. They can do so without spending money on any major repairs, and in many cases, they don’t even have to pay for security deposits. Instead, what they have to do is collect the monthly rent. Of course, this option is ideal for vacation rentals in particular, but Wilkoff said it also makes a great place to live in Chicago, whether you are just looking for a year or two of rental income or are looking forward to investing in a house or townhouse.