As interest rates begin to trend down throughout the year, the real estate market is ripe for high-return home flips. Lower rates will mean more potential buyers—and higher valuation. If you’re considering flipping your property in 2024, the key word is “timing.” A successful flip in Chicago is as much about timing as about the features and improvements you choose to add to your home.
Tomo, a Stamford-based real estate company, analyzed the 100 most successful home flips in the nation. Chicago nabbed two of the top spots. Of the thousands Tomo reviewed, these two homes sat at #48 and #58. These two flips together generated a final price that was $1.25 million over the initial sale price. How did they close with a return of 150%? The secret isn’t just “how” but “when.”
Identifying your property flip’s strengths
Chicago established itself as a major cultural center in the 1880s. It’s been a leader ever since. Its combination of blue collar grit and top-notch craftsmanship is irresistible to people who value American architecture that is built to last. The most desirable homes for sale in Chicago represent classic Midwestern elegance. High ceilings, old growth hardwood floors, abundant natural light, and ample yard space all signal long-term value to buyers.
The element of “timing” is key for these century-old craftsman-style homes. Built to stand for another hundred years, both of these top flips will continue to add value. Smart property updates highlight and conserve these attractive elements.According to Tomo’s data analysis, home flips that sell high include good-quality updates such as new tiling, new roofing and porch lumber, and new fencing. These aren’t necessarily upmarket upgrades, but they are long-term investments that can significantly boost the home’s valuation.
Why Chicago is an ideal market for flippers
Chicago is home to the second largest stock exchange in the nation. With more than 13 million daily trades, Chicago is a city that is continuing to grow, attract new buyers, and keep its eye on the bottom line. With this in mind, know that the local market is savvy and well-informed. Families, professionals, and business owners put down deep roots in Chicago. They may be buying for the long term. Residential buyers, especially first-time buyers, often look for a home that represents their investment in their future.
The two top flips in Chicago both offered flexible space that could adapt to an owner’s changing needs. For example, a finished loft or attic can become a lounge, office, or additional bedroom with quirky angles and fun details. A gorgeous bay window becomes a reading nook. A home has rental potential, or space for a subletter or live-in caregiver. Many buyers look for a home that can grow with them—an asset that will stand the test of time.
Here are the Chicago listings that made Tomo’s Best 100 Flips List.
3449 N Kildare Ave
Purchased for $210K in 2015, this property’s price tag was $925K when it sold in 2023. This home has retained all of its original 1918 charm. With a full finished basement, big windows in every room, a new double balcony, and tons of storage, this home maximizes every square foot with value and comfort.
2835 N Sawyer Ave
This historic 1895 cottage was perfectly renovated to show its best assets. With an extra-wide lot, Southern exposure windows, a giant walk-in pantry, and details like pocket doors, original oak trim, and 9 foot ceilings, this home is an instant “yes.” Bought in 2022 for $465K, this gem more than doubled its price tag and sold for almost $1.2 million only one year later.
Why list your property in Chicago now?
The changes in Chicago’s real estate market are advantageous for sellers who think ahead. New buyers are looking for homey comforts and good quality architecture with lots of character. Many of the homes in Chicago that are top flip candidates are in desirable neighborhoods, close to elementary schools, and have high biking and walk scores. Many of these homes sell for three or even five times as much in cities like San Francisco, New York, and Portland.
With its many universities, museums, attractions, world-class restaurants, and down-to-earth local culture, Chicago continues to attract people who want to put down roots. Thinking long-term instead of instant gratification will put money in your pocket. With this in mind, think “timing” when you list your property. Investing in higher quality paint and lumber, installing gourmet appliances, and choosing made-to-last improvements can more than double your return on the sale.
Research the best neighborhoods in Chicago for flipping to make the most of your investment. Want to see what not to do when flipping a home, check out Tomo’s House Flipping Flops. Or, want to get into the flipping market and not sure how, learn more with Tomo’s tips in House Flipping 101.
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