Reasons to Invest in Multi-Family Real Estate

 


If you’re looking to expand your investment portfolio, consider investing in real estate multifamily homes.

A multifamily property houses multiple families. Every residential property with more than one housing unit is a multifamily home, and each unit has its own kitchen and bathrooms. An apartment building with complex or multiple units is the most popular form of a multifamily property.

They can either be a two-family duplex or a high-rise apartment building with hundreds of units. Here are some of the most common reasons to invest in multifamily real estate.

Cash Flow

Investing in a multifamily property promises a reliable cash flow via rental income. While single-family homes only have one tenant or a group of tenants, multifamily real estate offers to rent from multiple tenants. Even if one unit is vacant, you can still have cash flow from other units.

Easy to Finance

Though obtaining a loan for single-family homes may seem easier than raising money for a million-dollar apartment building, there are greater chances for the multifamily property to be approved by a bank for a loan. That’s because these properties generate greater cash each month.

Growing Portfolio 

Investing in multifamily real estate is suitable for property investors who intend to build a portfolio of rental units. For example, it's easy to acquire 20-unit apartment buildings than purchase 20 different single-family homes.

Moreover, when purchasing 20 different properties, you’ll be required to open 20 individual loans for every property.  

Property Management

Most often, real estate investors hire a property management company to handle the everyday operations of their rentals. But many investors owning one or two single-family homes may not have the luxury to afford an external manager because of their small portfolio,

On the other hand, the amount of money produced by multifamily properties allows their owners to benefit from property management services without cutting into their margins.

If you don’t have enough capital to buy a real estate property, you can work to acquire hard money loans from private money lenders at Insula Capital Group. In addition to offering real estate financing, they also deal in investment home loans, hard money construction loans, commercial bridge loans, and more.

Whether you’re looking into flip loan financing, you can rely on their services. Get in touch with them today to get started.

 

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