Investing in multi-family properties can be a highly profitable real estate investment when executed correctly. Due to the shared features and proximity of the units, owners can benefit from reduced expenses and increased monthly income, making it a wise investment decision for those looking to maximize their returns from a single real estate transaction.
Continue reading as we investigate five warning signs to watch out for when purchasing a multi-family property in IL.
Adding Up
It’s not uncommon for sellers to have unrealistic expectations about their property’s value. If a seller is unwilling to budge on the asking price, it can be a waste of your valuable time. If the numbers on paper or presented to you verbally do not align with the reality of your investment and positive cash flow, it’s important to take note of this. If something doesn’t add up, it’s a warning sign to be aware of when purchasing a multi-family property in IL.
Lingering
If a multi-family property has been on the market for an extended period, it can be a red flag to be aware of when buying a property in IL. This may indicate that previous interested buyers have discovered certain issues or challenges that have made them hesitant to make an offer. As a result, it’s important to keep looking and conduct thorough due diligence before making a purchase decision.
Rental History
When purchasing a multi-family property in IL, if the owner is unwilling to provide records, including occupancy rate history and year-to-year profits, it can be a significant warning sign. When investing your hard-earned money, it’s crucial to have access to accurate and reliable data. If the current owner is only willing to provide rough estimates, it may be best to walk away from the deal.
Location
Understanding your market is crucial for long-term value when investing in real estate. As the saying goes, “location, location, location” cannot be emphasized enough. For instance, if you do not feel comfortable walking around the neighborhood, it is one of the warning signs to be aware of when purchasing a multi-family property in IL. However, if the area is undergoing revitalization and you have researched the city’s plans for upcoming improvements, such as parks, and noticed other properties in different stages of renovation, you may be getting a great deal at a bargain by entering early in a promising neighborhood.
Condition
When purchasing a multi-family property in IL, it’s important not to make decisions based on gut feelings. Instead, you should keep an eye out for physical warning signs with the structure. While the property may appear perfect in the listing, there is no substitute for visiting the property in person, where you can spot telltale signs of water damage or other apparent issues, including a general appearance of disrepair. Professional investors, like those at Cardinal Creek Properties, have a trained eye for what to look out for, making it worthwhile to seek their help in assessing your investments, especially if you are not highly experienced in this field.
If you are considering purchasing a multi-family property in IL and want to ensure that you do not miss any warning signs, why not seek advice from the professional investors at Cardinal Creek Properties. We are pleased to work with you throughout the entire process, and our ultimate goal is your success. We are committed to assisting you in making informed decisions about your investment markets and the properties you add to your real estate portfolio. Allow the professional investors at Cardinal Creek Properties to assist you in locating your next investment property. Please feel free to discuss any concerns you may have with our experts, who will take the time to listen to your needs. Don’t forget to inquire about our current inventory of the best multi-family properties available in IL. Contact Cardinal Creek Properties today at (314) 467-8137.