More and more people are considering real estate investments. Word is getting around about how lucrative it can be. (Not that we haven’t known that for decades!) But a lot of the really big real estate successes made a lot of their profit with multifamily properties. In case you hadn’t guess, these are big properties that hold several independent families in separate living spaces.
So should you look into such an opportunity? Certainly. Here’s why.
Let’s say you’ve got a house with one tenant in it, or one family unit. If you lose them as a tenant, then you’ve just lost 100% of the revenue from that property! This can be pretty disastrous unless you have savings or other forms of income. A lot of people don’t see it as such, but there is actually quite a lot of risk in a single-unit property. But let’s say you have three independent tenants or families in a property. If one leaves, you’re only losing a third! Read more about keeping tenants for longer at BiggerPockets.com.
The scale works in your favor
Imagine having a property for each of those families you could be housing under one roof. There are bound to be so many problems in each of those houses. This results in tremendous costs when it comes to repairs and maintenance. But let’s say they’re all in the same property. All of a sudden, you only have to fix one roof. You only need to maintain one lawn. This can save you a lot of time and money! Read more about repair and maintenance at LandlordTenantLawFirms.com.
It’s easier to sell than you think
You may not have been thinking about multifamily properties before now. But now you’re starting to see the benefits. Thankfully, a lot of investors are coming round to the benefits of this sort of property too! Not only that, but there are plenty of experts out there who are willing to help with this sort of venture. You may have felt that buying one of these properties would be a big risk because they’d be tough to sell. But this isn’t the case. Read more over at DFWSellFast.com.
There’s less competition
One of the reasons that people think these places are harder to sell is because there’s less of them than other types of property. But this doesn’t necessarily mean that demand for them is low. Remember that regular houses will outnumber such properties because these properties hold more tenants! You can offer lower living expenses and not have to worry about a lot of competition in this field. Potential tenants are typically families who are actively looking for multifamily properties.
Management companies can help
One of the downsides of this type of venture is that it’s a very busy one. You’re signing up to take on multiple families as tenants, after all! Lucky for you, there are property management companies who are willing to help you out. These guys will basically act as the landlord for you. (Or, at least, they will when you need them to be!) They’ll deal with the day-to-day stuff while you reap the investment benefits. Read more about property managers at OppChamber.com.