7 Reasons to Invest in Multi-Family
Are you thinking about investing in real estate and are questioning if you should invest in single-family homes, townhouse, condos, or multifamily real estate? If so, you've come to the right place.
In this article, we will share with you the reasons you should consider investing in multifamily real estate so you can have confidence and know that multi-family is the best Investment that you can make for your portfolio.
Reason #1 - A Safe Investment
There's no doubt that over the last 15 years the stock market has had its ups and downs and many people who had the bulk of their wealth invested in the stock market before 2008 lost a vast majority of it with the most recent market correction.
Thankfully, multi-family Real Estate is a safe investment choice to make because your rental will continue to generate cash flow for you on a long-term basis and the value of your rental will appreciate while other investments may be underperforming.
Reason #2 - More Doors = More Revenue
Unlike single-family residences which only have one rent every single month; with a multifamily real estate, there is more than one tenant in the building. This means that if one or two tenants move out on any given month, you still will continue to generate cash flow from the remaining tenants and have the ability to pay your mortgage and other expenses while you're searching for new tenants.
Reason #3 - Makes Growing a Portfolio Easier
Another great reason to add a multi-family rental property to your real estate investment portfolio is the fact that a multi-family unit makes building a portfolio of rental properties a lot easier.
Why? The answer is simple. When you invest in a multi-family rental property you will have more tenants paying rent at once compared to the time that it would take you to invest in multiple single-family residences.
Yes, it’s true that the cost of investing in a multifamily rental property may be more than a single-family home but the long-term benefits and ROI that come from owning a multifamily property are absolutely worth it.
Reason #4 - Can Easily Be Managed by A Property Manager
Not a fan of the idea of managing your own rental properties for self? If so, no problem!
When you own a multi-family rental property you can rest assured that you will not have to manage the property yourself because you can easily hire a professional property management company to manage the property for you on a monthly basis.
With a property management company, you will not have to concern yourself with tasks like finding and screening tenants, rent collection, maintenance and all the traditional hassles that come from owning real estate because the property manager will handle all of these tasks for you.
Reason #5 - More Renters Want Multifamily Properties Instead of Homes
Last of all, but most important, another great reason to invest in multifamily properties is that in 2017-2018 more renters including Millennials want to live in multi-family properties.
These days renters are looking for multifamily rental properties that are close to restaurants, shops, stores, airports and the entertainment options that they may use or visit on a frequent basis.
Renters are also searching for multi-family properties that offer amenities like a workout room, clubhouse, swimming pool, and other premium features.
Reason #6 - Easier to Finance Than Single Family Residences
Multifamily Real Estate is also easier to finance than single-family residences because a foreclosure on this type of Real Estate investment isn’t as likely as it would be for a single-family home.
Lenders know that with more tenants in a multifamily property it’s more likely that the owner will be able to continue paying their mortgage and bills every month.
Yes, it’s true, lenders know that the owner of a multi-family property will have strong cash flow compared to the owner of a single-family residence who may experience financial difficulty if their rental home sits vacant for any length of time.
Reason #7 – Appreciation
Last of all, but most important, with multifamily properties it’s also easier to phase appreciation because you have multiple units to choose from that you can improve at any given time.
Improving the quality of your units and revitalizing unused spaces in the multifamily property will lead to happier tenants who see that you care, and they will want to continue renting a unit in your building for years to come.
Learn More About Investing in Multifamily Real Estate
Interested in investing in multifamily Real Estate? The great thing about working with Blue Lake Capital is that you can invest in your first multifamily rental property without leaving your home or office.
Learn more about the services we can offer you by contacting us today at (401) 477-9804 or connect with us through our website.