Did you know that there are almost 22 million apartment buildings and multifamily units in the United States of America? A big segment of residential real estate investing is multifamily investing.
Investing in multifamily properties is a great way to get started with investing in real estate for a wide variety of reasons. Learning about the ways that you’ll benefit is a great way to see the benefits that you’ll gain from investing in multifamily units.
The good news is that you’ve found your way to multifamily investing 101 and you’re about to learn about all of the benefits of multifamily investing that you stand to gain.
Keep reading this article to learn more about multifamily real estate investing and why you need to get started with it today.
What Is a Multifamily Property?
Most people have knowledge of single-family properties and homes, but purchasing a multifamily property isn’t as popular or heard of. A multifamily property is exactly what it sounds like. It is a property that has the ability to host multiple families living in it.
The smallest type of multifamily property is the duplex. This is a building that has two separate living areas and they’re a popular living option for people that don’t want to spend the money it takes to get a single-family home.
There are also multifamily units that house three families or even four families. These units are some of the best properties to invest in when you’re first getting started with real estate investing. You can often finance multifamily properties through a bank just like you’d do with a single-family residence.
The best approach to take with multifamily investing is to purchase it and then partake in owner-occupant status. This means that you own it and that you’re living in one of the units.
Doing this will allow you to gain access to better types of loans that will save you tons of money. You’ll also see much lower interest rates by going this route. You’ll have a much easier time managing the property since you live onsite as well.
Multifamily investing is a great idea if you’re not bothered by living in one of the units in your new property. The benefits of multifamily investing will really get maximized by doing this.
Benefits of Multifamily Investing
There are tons of benefits of multifamily investing that you need to take advantage of. This is especially true when you consider the great loans and interest rates that you can get if you live in your multifamily property.
Here is a closer look at the biggest reasons why you need to look into multifamily investing.
Cash Flow
A big reason that many people start getting into residential real estate is for the cash flow that it allows. This cash flow is maximized when you get started with multifamily investing.
It is easy to predict what rents will be from month to month. You’ll also have no issue finding new tenants when the market is strong. You’ll have a strong flow of cash coming in from each of the families that rent from you which means consistent money going into your bank account.
It also allows you to save more money that you can put towards future real estate investments to grow your portfolio even more.
Passive Income
Passive income is another big benefit of investing in multifamily properties. Perhaps you’re getting into multifamily investing as a side gig or a hobby and you have a full-time job.
Investing in a multifamily unit is a wonderful way to gain a good chunk of passive income each month. You won’t need to do anything besides manage the property and you’ll bring in hundreds or even thousands of dollars each month.
If you want to give yourself even less responsibility then you can hire someone to manage the property for you. This will eat away at your passive income a bit but it will make managing the property effortless for you.
This is a great idea if you’re moving to a new area or country but want to make sure that your property is in good hands. It is also great if you’re new to managing properties and want some help from someone with experience.
Valuation
It isn’t a given that your multifamily residence will go up in value. With that being said, if you invest in it to make it nicer then the value will continue to go up.
The majority of multifamily units go up in value over a long period of time. This makes multifamily investing a great way to grow your wealth over a longer period. Check out memphisinvestmentproperties.net for more knowledge.
Less Risk
Getting a multifamily unit is one of the safest investments that you can make when it comes to investing in real estate. People will always need a place to live even when the economy takes a turn for the worse.
If anything, a bad economy could lead to higher demand for places to live like your multifamily unit due to people no longer having the ability to afford their house payments.
Fewer Loans
Another reason that you should consider multifamily investing is that it requires fewer loans when compared to other real estate investments. Most times all you’ll need is one type of loan that is quite straightforward.
You can get ten different living spaces with one loan. This is a great deal and much less of a hassle when compared to buying ten single-family units with financing. You’ll love how easy it is to invest in multifamily residences.
Start Your Multifamily Investing Career Today
Multifamily investing is a great way to grow your wealth with passive income. If you opt to go with an owner-occupancy loan then you’ll see tons of benefits of multifamily investing. You’ll face fewer loans and have less risk if the economy starts to go downhill. Best of all, it offers a great opportunity for increased cash flow.
For more helpful articles, make sure you check out our blog.