Pros and Cons of Multi-Dwelling Investment Property in Chicago

Instead of buying a home, many consider buying a multi-dwelling property in Chicago because it’s a good investment. For instance, a house will only yield monthly expenses instead of adding to the income in form of rent.  Multi-Dwelling Investment Property

Millennials are more likely to rent an apartment rather than buy a house, and you can really take advantage of that trend. Multi-unit complexes also make for a great retirees’ haven, with the right marketing and approach.

According to the US Bureau of Census, on July 1, 2015, there were 47.8 million senior citizens in the US, which represents about 15% of the total population. That sector actually grew by 1.6 million when compared to the population of 65 and older in 2014.

Below are the pros and cons of buying a multi-dwelling property in Chicago:


  • You build on the equity of your property each month so your monthly expenses are reduced
  • Better cash flow compared to a house that is not earning rent but collecting mortgage
  • More doors mean spreading the risks, so you don’t have to worry if one or two tenants leave
  • You can expect less competition because developers are building more single detached homes than multi-unit apartments
  • You can earn income while your tenants pay for your mortgage
  • Instead of depreciating, the multi-dwelling investment property in Chicago actually appreciates in value especially if it’s earning
  • You can apply for the same loan and own several properties in return


  • Taxes can be complicated so you need to obtain a good accountant and tax lawyer on retainer (particularly because there are tax breaks you can avail)
  • If you are living in the same location, there could be no privacy and you essentially work 24/7
  • They are also more expensive compared to single detached homes
  • Unlike when you buy a home, multi-dwelling investment property in Chicago, IL requires more maintenance expenses.
  • Stricter government regulations particularly on fire escapes, electrical and HVAC, as well as structural integrity of the property
  • Insurance is more expensive
  • Evicting a tenant can be a rigorous process

On the last point, suddenly any injury in your property takes a whole new meaning. You are legally responsible for your tenants, and fires (especially if they lead to injuries or deaths) could be very costly, and you could even end up in jail. This is why it’s recommended to set aside a portion of your income for unexpected expenses—these include hospitalization costs (in case of injuries), leaking pipe, non-working HVAC, bulb replacement and others.

There’s no right or wrong answer whether or not a multi-dwelling investment property in Chicago is the right course of action for you. Evaluate each of the advantages and disadvantages of investing in apartments, do your diligence and make sure you can take the hit financially before you take a leap.