Why you should consider investing in multifamily real estate
If you are looking to start investing in something but unsure about going into the stock market, consider real estate as an option. Although the real estate market can still be volatile, it won’t always be as uncertain as the stock market. So with it being a little more consistent, investing in real estate should catch your eye.
But it’s not just any kind of real estate. You should look into the multifamily real estate, i.e. apartment complexes. Unlike single-family properties in which a residential building is only available for rent to one family, multifamily properties have multiple rental spaces available.
So if you are interested in getting yourself into the real estate market, here are a few reasons why you should invest in the multifamily real estate.
Simpler to Manage
If you have multiple units under one roof, it is a lot easier to manage them all. Compare that to having 12 houses across town that you have to visit and inspect, having all your rental properties under one roof will make life easier on you.
Consistent Cash Flow
The steady cash flow of a multifamily property should be appealing. Even if you have one family that moves out, you are still generating income from all the other rental units within the property.
You can also boost the appreciation value of your multifamily property a lot more easily than a single-family dwelling. Adding something like a laundry room to an apartment complex is significant for tenants. By stocking it with coin-operated laundry machines that are in good condition, you will also generate income through those.
The more you can offer on your property, the more willing people will be to pay an increased rent. Updating the property and adding features like security cameras also help boost the appreciation. Plus if you decide to sell the property, sales of the multifamily real estate are massive. Some of the top multifamily sales 2017 were in the high multi-millions, even billions of dollars.
If you invest in a multifamily property and do nothing with it, you will still make some money. But if you put in a little work and time to do any updates and repairs, you are creating a space for families that need it. It’s a good feeling knowing that your work paid off to provide a safe and clean living space for other families in your community.
There is a bonus with this thinking. The more you put into your property that betters the tenant, the higher the value your property will be. It is a win-win for both you as the owner and the tenants.
More than likely there will always be a demand for apartment-like rentals. There will always be a flow of people that are in need of this type of housing, not necessarily because they want it. For example, look at those who are just entering the real estate market, are college students or just immigrated to your area. A multifamily complex likely is more affordable for them at their stage of life.