Top 5 Reasons to buy a Two Flat:

1. You want to earn passive income.

You rent both units out and earn a cash flow. Sounds easy, but there is more to it and most of the heavy lifting is done before someone moves in and pays you rent. First, you must select a good property that will cash flow at market rents and in the future. Then, you must market your property for rent effectively so as to attract the best tenants capable of taking care of your investment and paying on time. Make good choices on these two factors and your passive income will flow that much easier.
2. You want to stay close to your relatives without sharing a bathroom.
It could be an alternative for an aging family member to live close to relatives. It could be a home for a son or daughter who just graduated college and want some independence but cannot afford to pay market rents. It could be for a brothers and sisters who want to live close to each other and share some expenses to save money. In any of these scenarios, a two-flat provides a good option for family to stay close without sacrificing privacy.
3. You want to diversify your assets with a long-term investment in Real Estate.
A two flat can be a great investment, especially if held in the long-term. When buying a two flat as an investment, not only do you stand to gain off of the appreciation in value over time, you also gain from the monthly cash flows it provides. Buying a rent-ready two flat will not make you rich overnight. It’s unlikely that over the period of one year, the property will appreciate in value enough to be worth the time and effort. It’s the steady cash flows over a long period of time that will be the real reason you love your two flat. As values of real estate fluctuate in value over time, you will always have your rental income to count on. You will have the luxury of selling at a high point in the market because even while the market is depressed, you have cash flows to carry you forward.
4. You want some control and influence over your investment.
The main reason I really like two flat investment property over an investment condo is control. With a condo, your association has control over how your monthly assessment money is allocated. They hire the property manager, they control the special assessments. With a two flat, you are your own boss. When you want something done, the only person you need to get approval from is yourself. If you are a self starter, you’ll appreciate the ability to control the profitably of your investment and the timing of your major expenditures.
5. You want to shield your income against income taxes.
Although there has been talk about lessening the effect of the mortgage interest tax deduction in recent years, you are still able to deduct mortgage interest on your taxes as an itemized deduction. You are also able to offset you rental income by your depreciation expense each year. For a more in depth way to maximize tax savings with real estate investments, you should consult a CPA. Every individual or family has differing income levels and sources of income which will alter the benefit of using real estate as a way to earn and shield income from income taxes.

Learn more at my website, www.chicagoREinvestment.com.