The Chicago real estate market was ranked as one of the best multi family markets for 2020. That’s because, on average, multi family homes for sale in Chicago promise good cap rates.
Check out the full list here: What Are the Best Multi Family Markets 2020 with High Cap Rate?
Here’s how small multi family homes in Chicago (2-4 units, residential real estate) performed towards the end of Q2 2020, according to Mashvisor’s real estate data:
- Median Property Price: $536,012
- Price per Square Foot: $275
- Price to Rent Ratio: 24
- Traditional Rental Income: $1,895
- Traditional Cap Rate: 2.3%
Related: What Is a Good Cap Rate When Investing in Multi Family Homes for Sale?
So it’s safe to say that investing in multi family homes for sale in Chicago could be a smart move for a real estate investor. The question is, how do you find profitable Chicago multi family homes for sale? Just because the average multi family rental property performs well, that doesn’t mean any or all of them will. The answer? Skip traditional search methods and use online investment property search tools. Let’s take a look at how this is done.
How to Find Multi Family Homes for Sale in Chicago
There are a few different real estate websites you can visit to find multi family homes for sale in Chicago. But none compete with Mashvisor and it’s investment property search and analysis tools. You see, our tools won’t just show you multi family listings like many other sites. We’ll help you find the best neighborhoods in Chicago for buying multi family homes as well as high return multi family properties. And all in just a few minutes. Follow along with these 4 steps.
Step #1. Visit Mashvisor’s Real Estate Search Engine and Type in “Chicago, IL”
The first step is simple – visit Mashvisor’s homepage where our Real Estate Search Engine lies. Type “Chicago, IL” in the search bar and select the city from the drop-down menu.
Next, hit the “Start Analyzing” Button.
Step #2. Set the Multi Family Property Search Filter
Once you set the location to the Chicago housing market, you’ll be taken to the Real Estate Investment Search App. Here, you’ll see a map of all the neighborhoods in the city along with all the available Chicago investment properties for sale. You don’t want to waste time sifting through a bunch of single family homes or condos for sale in Chicago. So sign up for an Expert Plan with Mashvisor. This will give you access to the multi family property search filter:
Once set, you will only see multi family homes for sale in Chicago on the map. This will include:
- Duplexes for sale in Chicago
- Triplexes for sale in Chicago
- Fourplexes for sale in Chicago
The filter will also help you see which neighborhoods in Chicago currently have multi family homes for sale and which don’t.
Step #3. Use the Real Estate Heatmap to Conduct a Neighborhood Analysis
Depending on when you’re following along with this guide, you could be looking at a few dozen (or more) multi family homes for sale in Chicago on the map. While Mashvisor’s real estate investment software makes it super easy to quickly analyze each one, there’s a faster way to do things. And that’s to first pinpoint the best neighborhood for buying multi family homes in Chicago.
You can do this using Mashvisor’s Real Estate Heatmap. Simply click on the box labeled “Heatmap Data Set.” This will reveal a few different filters that you can use to conduct your neighborhood analysis of the Chicago real estate market:
- Traditional Cash on Cash Return
- Airbnb Cash on Cash Return
- Airbnb Rental Income
- Traditional Rental Income
- Listing Price
- Airbnb Occupancy Rate
Unless you plan to house hack an Airbnb Chicago multi family home, stick to the filters regarding traditional, long-term rental properties. They will help you find the best neighborhoods where you can generate a high multi family return on investment. For example, if you select the Traditional Cash on Cash Return filter, neighborhoods that turn up in green and have multi family homes for sale will be great places to invest:
With the Listing Price filter, neighborhoods in red should be your target if you’re looking for affordable multi family deals.
Just like that, you’ll know where to invest in Chicago real estate. Now, it’s time to analyze any potential Chicago income property.
Step #4: Conduct Multi Family Real Estate Investment Analysis With the Calculator
Now that you’ve narrowed down your list of Chicago, IL multi family homes for sale to those available in one neighborhood (or two), it’s time to analyze them. Mashvisor doesn’t want you wasting time with multi family analysis spreadsheets. So we created the Multi Family Investment Calculator, which also works as an Airbnb calculator. This is the best multi family deal analyzer you’ll find on the market today. It will conduct a complete multi family real estate investment analysis for you.
All you’ll want to do is provide some financing information if you’re buying multi family homes with a mortgage. Set your down payment, interest rate, loan term, and mortgage type into the Mortgage Calculator section. From there, Mashvisor’s Calculator uses multi family comps to gather the needed data to help you decide if this is the right Chicago multi family home for you, including:
- Rental Income
- Rental Property Expense Estimates
- Monthly Cash Flow
- Cash on Cash Return
- Cap Rate
- Occupancy Rate
- Traditional vs Airbnb Rental Strategy Comparison
You’ll also get tax history info on multi family homes for sale in Chicago as well as sales and rental comps. All of this data will help you find a great Chicago rental property in the local multi family market.
What About Foreclosed Multi Family Homes for Sale in Chicago?
You may not just be hunting for multi family homes for sale in Chicago, but rather foreclosed multi family homes. Many real estate investors prefer these properties as they will come cheaper and can still provide a great rate of return.
Mashvisor has an easy way for you to find foreclosed multi family homes for sale in Chicago and that’s the Mashvisor Property Marketplace:
This platform is home to plenty of off market properties for sale including foreclosed homes, short sales, bank owned homes, and auctioned homes. You can set a few filters to narrow down your search like location, budget, cash on cash return, cap rate, type of investment property, and more.
Related: The Best Way to Find Off Market Multi Family for Sale
When you find a promising Chicago foreclosure, analyze it using the Multi Family Investment Calculator.
Start Your Chicago Multi Family Property Search Now
Don’t waste one more minute looking through listings of multi family homes for sale in Chicago on other websites. Start your search on Mashvisor and find a profitable property today. Sign up now for a 7-day free trial to access our tools.