Posted By Ryan Young
Have you ever considered a multifamily property as your next investment but were unsure of the benefits a multifamily property can bring versus other type of real estate to choose from? This article discusses 5 of the main reasons to consider a multifamily property as your next purchase.
Owning real estate can provide you with many different benefits. But, when you invest in a multifamily residential investment property, the benefits are a bit more unique than most other real estate investment options. Here are 5 reason why multifamily investing makes sense for some many investors.
Multiple Streams of Income
Having more than one unit in your investment property allows for the property to generate multiple revenue sources. You always want to maximize the amount of revenue a property can produce and a multifamily property does just that.
Loss Offset
Because multifamily investment properties have more than one unit (income source), when the occasional vacancy occurs, the additional units will still provide income and cover the costs of operation.
Offset Your Cost of Living
If you choose to live in once unit and rented out the others, this will help create equity faster and can typically cost you less than renting your own place to live.
Easy to Manage
Having multiple units in one location is easier to manager than having single units scattered around the area. This reduces overall management and maintenance costs. Additionally, if you occupied a unit, the building is typically maintained better and you may have a higher tenant quality.
Easier to Finance
Having multiple units producing cash flow each month will typically make financing the property far more attractive to banks. Banks love when there are multiple streams of income from a property since it severely lowers their risk.
When you are considering your next investment property purchase, seek out multifamily properties as options. Run your numbers and do your homework on the area. If the numbers make sense you should then consider your financing options for the property.
Real Estate Capital Group provides multifamily property financing for real estate investors nationwide. Our funding is reliable and competitive and we would love to help you obtain your next investment property with our no doc, asset based solutions.
Please reach out to us and we will help you get your next deal to the closing table. Please fill out the contact form through this link.
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