3 Reasons to Invest In Multi-Family Real Estate

If you’re passionate about real estate, want to make good money, or need an extensive portfolio of residential units under your belt, multi-family properties are the way to go!

Any property that accommodates more than one family falls under the category of a multi-family unit. Common examples are buildings, apartments, duplexes, and triplexes.

Here’s why you need to invest in one:

They’re easier to finance compared to other investments

Owing to their bigger size and high number of housing units, multi-family properties are more expensive. A single-unit may cost as much as $30,000, but the price of a multi-family can go up to millions. But at the same time, they’re also easier to finance.

In order to evaluate loans, banks usually look at the project’s ability to pay back the initial investment. This is far greater in the case of multi-family units, since they generate more cash flow each month.

Even if a tenant leaves, the property will still be occupied. This makes it less risky and reduces the likelihood of foreclosure. In a nutshell: there are more chances of your loan getting approved.

Growing your portfolio is easier with multi-family units

Let’s say you’re an avid investor who wants to expand their portfolio of rental units. Would you want to invest in a single property with 20 small units or 20 individual housing units?

The former is a more feasible option in terms of time, effort, money, and feasibility. Opting for the latter means you’ll have to deal with 20 different sellers, strike 20 different deals, and tackle the paperwork for each deal separately. You might even have to apply for 20 loans separately. In short, lots of hassles and headaches.

So if you’ve got the right financing and wish to grow your portfolio, it’s easier to invest in a multi-family property.

Better management options

It doesn’t make much sense to hire a property management company to look after the day-to-day affairs of your single-family unit. Property managers help you find the right tenant, screen them, and collect rent payments in exchange for a fee.

If you own a single-family unit, you might not have the luxury to seek help from a property management company. The amount of rental income you earn will not be able to cover the cost.

With a multi-family unit, financial decisions like this make much more sense. The total income a multi-family owner makes gives them the room to seek the benefit of such services.

Global Capital Partners Fund LLC is one of the most reliable options when it comes to real estate investment in New York. They offer customized deals for multi-family investment options. Check them out.

Categories: Real Estate

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