Chicago Duplexes, Triplexes & Fourplexes for Sale

Chicago is one of the biggest multi-family markets in the country. The inventory here has been built up of two-flat, three-flat and four-flat construction for well over a century. Brick and greystone flats line neighborhoods on the North, South and West Sides and they've become very popular with house hackers who want some income and still want a place that qualifies for conventional financing.

Prices swing wildly depending on where you want to be and how much income you want to generate. North Side neighborhoods like Lincoln Park cost the most per unit with lower cap rates, so the short-term cash flow is tougher on those. But the flip side is you typically get better long-term appreciation and there's always a big pool of potential tenants.

South Side and West Side multi-family sell for some of the lowest price-per-unit figures in the city and offer higher yields. But you're probably going to be buying something older that requires more maintenance and might be tougher to manage with higher turnover. The plus side is you could find some diamonds in the rough that you can build sweat equity in.

Near-west suburbs such as Oak Park and Elmwood Park are a good compromise between the two, with stable demand and some well-maintained vintage homes. New construction multi-family is not as common here as it is in cities like Houston, but it is a growing section of the market. Prepare to pay a premium for them, but keep in mind your maintenance and repair budget should be practically zero for a while.

If you're interested in investing in Chicago two, three and four-flats you should check the property taxes and insurance premiums carefully as they have a big impact on your net cash flow. And become familiar with the City of Chicago Residential Landlord and Tenant Ordinance and de-conversion rules. A broker who specializes in multi-family homes can be a big help with all of this.