As the sun shines and pandemic restrictions are lifted, buyers are flooding the Chicago multifamily market. Savvy investors and newer buyers and investors are taking advantage of low interest rates and amazing FHA programs to grow their equity and income. The biggest challenge in the marketplace right now is quality inventory!
As a small sample, there are only 59 properties on market that follow conforming loan limits in the Bucktown, Wicker Park and Logan Square zip codes. Many of those are gut-rehabs or tear-downs and do not work for this type of investor or owner occupant.
How does this demand shortage affect pricing?
With limited options, buyers are left to compete for quality inventory. 44 properties in this same area are currently under contract, with many being tied up in under 30 days and at full asking or above. In the last 30 days 12 turn-key properties have closed with 7 of them selling at or above list in this area. Buyers are clearly willing to pay a premium for quality in established neighborhoods right now.
If you are thinking of selling one of your smaller properties, now is a great time to put that equity to work. Why not leverage your returns into a larger commercial building (5+ units) and grow your cash flow? At the Apartment Source, we are happy to give you a free analysis of value, show you how to add value for sale and list your property. After a successful sale, we will be happy to find you a new one, add value through rehab, lease-up and then if you like.. manage it for you!
There’s no better time to take advantage of this market than now! We would love to start that conversation today and help you grow your portfolio.
Call us at (773) 404 9900.