Sunday, June 28, 2009

2-flats as Investment Properties

The Chicago Tribune recently published a great article articulating a current [1016] investment strategy: 2-flat ownership.

The 2-flat: A classic Chicago property type.

The article by Heidi Stevens (full text here) hits on a lot of great bonuses of owning a 2-flat as compared to condo ownership, including:
  • Owner-occupied 2-flats, where you live in one unit and rent out the other, qualify for fantastic FHA financing. You can still get a great place with only 5% (or even 3%) down.
  • When rental income is considered, it is possible to afford to buy in a neighborhood that would otherwise be outside of your budget.
  • Need to move? You may not have to sell: you can rent out your unit and borrow against the ownership of the entire building. Of course, this will require you to have lived there for some time to have built equity.
  • No condo associations. Yes, this may require a little more owner 'proactivity,' but that is a small price for real estate freedom.
In short, 2-flats are a great way to both: 1) establish home-ownership and 2) get into the real estate market in an entrepreneurial way. Click here for some more Tribune tips.

If you are interested in shopping for a 2-flat, or any type of Chicago real estate for that matter, [1016] knows a guy who can help you out. And we might even have the place for you.

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