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Probably the most crucial question for any real estate investor is how to evaluate a property’s fix-n-flip potential. This is where the rubber meets the road and what separates those who make money from those who don’t in Chicago, IL.
There are a few key points to consider before you put ink on any real estate deal. Those points include knowing how to spot true comps, seeing where you’ll add value, and building a good sense of what makes a property attractive to a buyer.
Real estate investors looking to purchase or sell investment properties in Chicago, IL should consider analyzing the median listing prices of homes in the area. This allows investors to calculate whether there is enough margin for profit once all purchase costs and necessary repairs have been totaled before either selling the property again or holding it as a long-term rental investment. Rising prices in Chicago, IL can indicate it is a seller’s market where demand for properties is high enough that sellers can increase their asking prices on investment properties, and successfully close with that asking price. Alternatively, a market where prices have decreased could indicate a buyer’s market.
The number of properties available on the market in Chicago, IL is another great indicator of that area’s popularity and potential profitability. Usually, minimal inventory means demand is high for that area. If properties are not vacant for long, there is probably a reason why people want to live there and investment property investors should take note of these factors when deciding if they should purchase a property in Chicago, IL.
The length of time a property sits on the market can help investment property investors understand the supply and demand in Chicago, IL. Shorter days on the market mean people are buying up or renting out homes at a faster rate. Alternatively, properties sitting vacant for longer periods of time can either mean asking prices are too high in Chicago, IL, or there may be reasons why the area is not attracting enough buyers or renters interested in living there.
Education: Chicago is home to one of the highest educated workforces in the country, greatly due in part to the surrounding top ranking schools in the Chicago, IL area.
Economy: Chicago‘s top employers are driving growth in the real estate market including General Hospital.
Businesses: According to the Chicago Chamber of Commerce, Leisure & Hospitality, Professional & Business Services, and Education & Health Services have seen high job and wage growth.