Real estate is a safe and lucrative form of investment compared to volatile ones like stocks and cryptocurrencies. As long as you pick the right properties, there are good chances that your investment will grow over time.
Moreover, a long-term approach ensures the safety of your money. Rental real estate makes a great choice as it generates a steady income year after year.
Multifamily properties are the best kind of rentals you can pick for your portfolio because they deliver more than consistent growth and regular income flow.
Here are some valid reasons to pick these deals in 2023 and beyond.
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1. Easier to Finance
When you buy a multifamily building, you may have to pay more than a single-family home. But it is not a reason to worry because raising a loan for multifamily properties is much easier. Lenders are happy to part with their money because these properties have good potential for generating regular cash flow every month. They can rest assured about the regularity of income, even if some homes are vacant or a few tenants delay rent payments.
It is not the case with single-family homes where the income stops if the property goes vacant at some point. Lenders consider the factor while determining the risk factors of the loan, making multi-family homes a better choice for them.
2. Rapid Portfolio Growth
Every investor wants a portfolio that grows fast and remains secure down the line. Fortunately, multifamily investing has you covered on both fronts. It is ideal for investors who look forward to building a large portfolio of rental units. You have to invest less effort and time in buying a 10-unit apartment building than purchasing ten different single-family homes. There is less paperwork and fewer formalities to handle.
Not to mention, you will not have to spend time and money to conduct inspections on ten different houses at different locations. Additionally, you can steer clear of the complications of opening separate loans for each property you acquire.
3. Ease of Management
Managing properties can be as stressful as acquiring them when it comes to rental real estate. You have to handle the day-to-day operations regarding maintenance.
Further, you have to find and screen tenants, collect rent payments every month, and handle tenant evictions. The entire task can be cumbersome, even if you pocket hefty rental income from the property.
You can make things a lot simpler with multi-family homes by hiring a property management company to take care of everything. It is a viable choice because the returns of hiring a professional property manager are much higher than the cost.
While you may do it for single homes too, it is seldom financially feasible. In most cases, you get a significant cut in your margin for a smaller portfolio with single homes.
Multi-family homes make an ideal investment choice in pandemic times when steady income is the top priority for investors. These properties bring the assurance of regular income throughout the ownership. So you can invest in them without second thoughts.
Read More: Process of Investment Management
