Which investment option is best for your hard earned money? Single or multifamily properties? Multifamily real estate investment comes with many different key benefits. It’s most recommended to have a clear knowledge of the offered benefits so you can make informed investment decisions.
Multifamily real estate doesn’t just play a key role in providing necessary, affordable housing for people across the world, it is also seen as one of the best housing solutions for people of different stages all through their lives.
Here’s 4 great reasons why multifamily real estate is a great investment.
Ease of management
Owning 4 different single-family homes spread out across the city sounds like a nightmare. You have to manage all 4 homes individually. Now think of having all 4 residential homes under one roof. You may need more than one manager to take care of all 4 units across the city which brings additional cost. With all of your units in the same dwelling, just one manager is needed for the one building with all property units. Ease of maintenance and location proximity is a key reason why multifamily real estate is a great investment.
More expensive but the same type of financing
Another reason why multifamily real estate is a great investment is the ability to finance it easily. Most people have the wrong impression that multifamily properties are difficult to finance. In reality, they can be financed the same way that a single detached home might be. Because multifamily properties up to 4 units are considered residential, financing them is very similar to a single family home. We’ve frequently financed duplex and multifamily properties for our clients with ease.
It takes less time to grow a portfolio
The multifamily real estate property investment is known to have more advantages for investors. They are perfect if your aim is building a relatively large portfolio of rental units. Owning a 4 unit multifamily building is considered a lot easier and takes less time than trying to purchase 4 different single-family homes.
Always on demand
In the U.S. housing market, multifamily properties play vital role in providing essential housing solutions for those renting out of necessity rather than choice. More to that, a majority of immigrants moving into both the U.S and Canada often fall short of funding to secure a homeownership and for this, they have to rent for over 10 years on average before being able to make a home purchase. Depending on your specific area, you might be a great fit for student or professional housing. Being able to cater to the housing demands of your area is another reason why multifamily real estate is a great investment.
Are you thinking about investing in real estate or even becoming a first time home buyer? You can absolutely purchase a multi-family unit as your starter home. My team and I would love to help you, so please reach out with any questions!