Multifamily and investment property
Chicago Multifamily and Investment Property Realtors
Dorazio Real Estate helps Chicago investors buy and sell 2-4 flats, apartment buildings, mixed-use buildings, and rental homes. Our agents were investors first, so we read the rent roll and the building before we talk about the price.
Why investors call us
Investors first
Our agents were investors first. We start every deal with due diligence, valuation, and income modeling, since those decide whether a building works for you.
A managing broker who owns buildings
Our managing broker owns more than 100 multifamily units across several markets, plus short-term rentals in Nashville, Jacksonville, and El Paso. He has also brokered multifamily sales across Chicagoland and is a BiggerPockets Featured Agent.
A property manager under the same roof
Our sister company, BCG Real Estate Group, manages buildings it owns and buildings for owners who want to hand off oversight and maintenance. Its managers see the repair bills and turnover costs that a listing sheet leaves out.
Agents who have done the deals themselves
One of our agents house-hacked a three-unit building with a VA loan, completed two single-family flips, and ran a property management company with 150 rental units. Another works as an IBEW electrician and brings a trained eye for a building's systems and safety.
What we work on
The properties we buy and sell
2-4 flats
Two-flats, three-flats, and four-unit buildings work as pure rentals or as a home with rental income attached. They're also the largest buildings you can buy with a VA or FHA home loan.
Apartment buildings
Buildings with five or more units sit outside VA and FHA home loans, so you'll finance them differently. We help you compare the rent roll, the expenses, and the building's condition against similar buildings nearby.
Mixed-use buildings
A storefront with apartments above brings two kinds of tenants and two kinds of leases. We list and buy mixed-use retail and residential buildings and help you read both sides of the rent roll.
Single-family rentals
A rented house or condo can be the simplest first investment. Check the association's leasing rules before you buy a condo or townhome to rent out, since some limit rentals.
Live in one unit, rent the others
House hacking a 2-4 flat with a VA or FHA loan
You can buy a building with up to four units with a home loan if you live in one of the units. Rent from the other units helps carry the mortgage while you learn to run a building.
A VA loan needs no down payment as long as the sale price isn't higher than the appraised value. You'll need to move in, normally within 60 days of closing. The lender may count 75% of the documented rent from the other units toward your qualifying income, and will want to see cash reserves equal to six months of principal, interest, taxes, and insurance. Our VA loan page and our post on the VA loan house hack walk through the details.
An FHA loan covers one- to four-unit buildings for owner-occupants with a minimum down payment of 3.5%. HUD sets the rules, and your lender adds its own.
Either way, the full mortgage payment is yours every month, whether or not a unit sits empty. Build a vacancy allowance and a repair reserve into the budget before you write an offer.
Before the offer
What we check before you write an offer
The legal unit count
Some sellers market a building as a two-flat or three-flat when the city or village doesn't recognize the garden apartment as a legal unit. We check the zoning, the permits, and the current use before you count rent from a space. Our post on buying a home with an ADU covers garden units and coach houses.
Rents and leases
We compare the rent roll with signed leases and with rents for similar units nearby. We also review security deposits, lease end dates, and who pays which utilities.
The building's systems
Older masonry buildings can be solid purchases. Brickwork, porches, sewer lines, roofs, boilers, and electrical service still need a careful inspection before you set your price.
Taxes and expenses
Cook County taxes can change the monthly math in a hurry. We pull the tax history and look at insurance, utilities, and maintenance so the expense side of the budget is real.
Before you commit
Run the numbers with a multifamily investment analysis
For a building you're serious about, our multifamily investment analysis puts the numbers in one report. It covers net operating income, cap rate, cash flow, the rent roll, rent comparisons, expense benchmarks, financing scenarios, value-add potential, and an exit plan.
You can order the analysis on its own. You don't have to hire us to represent you in the purchase or sale.
For owners
Selling a multifamily or mixed-use building
Investors buy a building's income. They'll ask for the rent roll, the leases, the tax bills, the utility costs, and the repair history before they make a serious offer. We help you gather those records before the listing goes live, so buyers can underwrite the building quickly.
We list and sell 2-4 flats, larger multifamily buildings, and mixed-use properties. A measured 2D or 3D floor plan shows every unit's layout to buyers who can't tour each one. For a valuation without a listing, see our broker price opinion. Our post on selling without an agent starts with a four-flat one of our agents found at an estate sale.
Local guides
Investment property by town
Each town guide has a section for investors with what to check before you buy a rental there.
- Investing in Beverly and Mt. Greenwood
- Investing in Oak Lawn
- Investing in Evergreen Park
- Investing in Palos Hills, Palos Park, and Palos Heights
- Investing in Alsip
- Investing in Bridgeview
- Investing in Hickory Hills
- Investing in Willow Springs
- Investing in Blue Island
- Investing in Wheaton
- Investing in Naperville
- Every area we serve
Questions investors ask
Chicago investment property questions
Can I buy a Chicago 2-flat with no money down?
Yes, if you qualify for a VA loan and live in one of the units. A VA loan needs no down payment as long as the sale price isn't higher than the appraised value. An FHA loan needs at least 3.5% down. Closing costs, prepaid taxes and insurance, and reserves still need cash either way.
Can rent from the other units help me qualify?
Yes. On a VA loan, the lender may count 75% of the documented rent toward your qualifying income. The lender will also check your reserves and your ability to manage the building, or your plan to hire a property manager.
Can I buy a five-unit building with a VA or FHA loan?
No. VA and FHA home loans cover buildings with up to four units. A building with five or more units needs a different kind of financing.
How do I know a garden unit is legal?
Check the zoning, the permit history, and the municipality's records for the number of legal units. A listing that calls a building a three-flat doesn't prove the city recognizes three units. Confirm it before you count rent from the garden unit.
What does a multifamily investment analysis include?
It covers net operating income, cap rate, cash flow, the rent roll, rent comparisons, operating expenses, financing scenarios, value-add potential, and an exit plan for the specific building. You get a written report and a conversation about next steps.
Do I have to hire you to get the investment analysis?
No. You can order the analysis on its own and decide your next move without us.
Can you manage the building after I buy it?
Our sister company, BCG Real Estate Group, manages buildings for outside owners as well as the buildings it owns. Ask us for an introduction when you start looking.
Start with a conversation
Bring us the building you're looking at
Send the listing, the rent roll, or the address. We'll talk through the numbers, the building, and whether it fits what you want your money to do.
Bring the deal, the question, or the market you're curious about.
Or send a note through our contact page.