should i buy a multi-unit for my home?

They are the guardians of the block. The ones looking out for the Cottages and Bungalows, or maybe the Queen Annes or the Four Squares. Those aren't the names of the latest Northside hipster moped gangs. They are the stalwarts of Chicago's single family housing stock. But no chess board is complete without the rooks. Those would be the two and three flats. In other townships, they are often labeled 'duplex'. Not in Chicago. We reserve that for two story apartment units. The City of Big Shoulders is really the City of Multi-Units, that being the all encompassing name of the deep and varied collection of neighborhood apartment buildings: two flats, three flats, four flats, 6 flats, 9, 12, 16.......choose your number. Eventually there are so many they end up in a courtyard or a high rise.

---

It is the smaller buildings though, 2, 3 & 4 flats, that have defined the growth of Chicago, one fueled by immigration. Did you know these buildings alone make up 25% of Chicago's housing stock, and the majority of housing in 1/3 of the city's neighborhoods? These are the properties that gave one time foreigners the ability to become a property owner. Sure, they eventually moved to a suburb, or someplace warm, or, even, back to whence they first came, but it was only with the economic prowess of this city's multi-unit pragmatism that a working class person could embark upon the once unthinkable entry into property ownership.

Why would a building with apartments be cheaper than a home, or even a condo? Rental income. And the nature of financing. While the sales prices of condos and single family homes are often less expensive than a small multi-unit, the monthly mortgage payment is usually significantly less than a home, and often less than a basic condo. Due to Chicago's very low vacancy rates (and likely any other area with strong demand), rental income is a near guarantee – the exception being dipshit owners who ask too much or can't bother to clean their unit prior to advertising.

Having a renter sounds awful though. Complaining about everything! Fix this. This broke. Making a racket at all hours. Squatting!! Have you not seen Pacific Heights? No thank you. I'd rather spend more money to have a place all to myself.

Most people have rented at some point in their life. Haven't you? Did you neglect to pay your rent? Did you annoy your landlord constantly? Were you inconsiderate of the neighbors? Well, this is about tenants who are NOT college students. The fears of apartment building ownership are largely unfounded. At least if you choose to live in the building. And walk around with a large axe – not really necessary but a cool trademark for the novice.

Who the f#@% buys these places? People that think Condo Associations are fascist training grounds. People who would love a single family home, but can't afford one in their preferred neighborhood. People who are willing to take a bit of risk and sweat to have a less expensive home but still value the inherent benefits of home ownership: complete control over their living space, investment potential, & increased neighborhood involvement.

What happens to the owners of two and three flats? Like, if they don't get murdered by their tenants? Transformation. Many landlords, particularly those in discussion here, the archetypal 'owner-occupant' realize the intrinsic benefit of 'power'. Simple changes they make to their new building can significantly impact their tenants; repairing long neglected annoyances, new outdoor security lights, a fresh coat of hallway paint. And then demonstrating acceptance that your tenant needs to pay rent late due to a personal situation, or the ability to quickly run downstairs and solve a minor (to you) issue.

To see the positive effect your small choices have on another individual is extremely moving, and one that many never get to experience. Many previous clients have mentioned a time a tenant couldn't pay rent, and they allowed them additional time, and in every instance that same tenant has usually remained a tenant for longer than average, paying on time, and forever appreciative of the owner's understanding of their previous difficulties.

Sure, you can go total slumlord, and create Mold Palaces and Broken Window Kingdoms, but those rapscallions rarely live in their properties, much as their squatting doppelganger avoids buildings occupied by their caretakers.

Owners of multi-units aren't always enamored of them forever. Some find them comfortable until they have kids, and then decide to take over another unit/basement/attic to increase their living space. Several clients have done this – some opt to merely utilize another floor so when they move out the building can have all of it's original rentals while some spend the time and money needed to make a proper two story unit. Others decide the building is a nice investment as a rental, but they are ready for a change. A few previous clients bought their buildings when they were single, met somebody, had kids, tried to live in the building, and decided a single family home was a better fit. But they kept their building as a rental so they could have a long term investment, like an index fund that needs a bit of upkeep. And some come to understand that they don't require the extensive living spaces of their fellow citizens, and decide their two flat apartment is the ideal fit, especially when it means using their rent subsidized savings to embark on other adventures they wouldn't have been able to afford with a larger mortgage. One previous client ended up with two small buildings, and decided to leave all of his units rented, and is using the additional income to support his life traveling.

Any large city, and, well, any municipality, should offer a range of housing because the human race comes in a range too. A lot of people talk about diversity, even going so far as to say they love it, despite choosing to live by people similar to themselves. Housing diversity allows the desired urban milieu to exist. When a block has older cottages, newer luxury homes, small older condos and big newer condos, designated affordable housing, large apartment buildings, and small apartment buildings, socio-economic diversity is a given.

The next time you stroll down a Chicago side street, take another look at that two and a half story building with identical looking floors. Notice how a craftsman took the time to install detailed cornices above a decorative frieze along the top facade of the building. Develop feelings for the quarried limestone or kiln curated face bricks adorning the building's face. Notice the inviting front porches calling you beneath the portico with those ornate carvings. Now forget this architectural fluff, and just think about the generations of renters who passed through those solid oak doors, and the live-in owners who kept these properties alive. That is Chicago. As much as corrupt politicians, mustard only hot dogs, and Cubs losses.