Strategic Considerations: Hold or Sell In 2024?

Not only is 2024 a presidential election year, which is rife with uncertainty about potential changes in policy nationwide, but the Federal Reserve has signaled that they expect interest rates to be cut throughout the year, as well. This is on top of the new 5% low down payment program that debuted in December 2023, and which owner-occupiers are hungry to use on multi-units around the city.

In a market with historically low residential inventory, now is a good time to reanalyze whether you are better off holding or selling your investment properties in Chicago.

Building Condition

Giving your property a clear-eyed inspection is the first step in determining whether it is worth holding or selling in the coming year. Tallying upcoming expenditures is likely already on the agenda as part of the maintenance plan, and these figures can give you a starting point. If the expenses look like they will be rising higher than you have budgeted, listing the building may be an enticing option.

To Rehab Or Not To Rehab–That Is The Question

Speaking with a licensed real estate agent to discuss whether making repairs or renovating is worth your time and money should be prioritized before you begin any projects. In some ways, a seller with an outdated kitchen or bathroom–sought-after projects for hopeful house hackers across the city–may be the exact type of maintenance to defer if your units are fully leased. Projects should be weighed on the projected return on investment, the timing for current tenants, and the effort required on the part of the seller. 

Due to the low inventory around the city, buyers understand that they may need to take on projects. As is sales have also become increasingly common as properties on the market have dwindled, giving sellers less of a headache in the attorney review process. Distressed properties are selling, but the owners need to be realistic about their asking price, especially as the needed projects become larger.