If you are interested in creating more wealth at a faster rate, adding multi-family units to your portfolio is the way to do it. Cash flow on a multi-family is always greater than that of a single family home, simply because you have more rents coming in. You could buy a triplex, a few duplexes, or a few single family homes. It’s the total cash flow that really matters.
The more units you have under one roof, the less financial risk. Imagine you have an 8 family property. You would have one roof, one lawn and your tenants would be centrally located. This reduces many costs in comparison to owning 8 individual residential houses spread out in different areas.
Locations near large employers like hospitals, universities, and large corporations are far more likely to attract potential renters. If your property is large and can accommodate groups comfortably, you stand a good chance of keeping your rental units occupied. Having a multi-family property with several small units will allow you to have multiple sources of income. Instead of just having one large rent check coming in, you could have several smaller ones. This means that if one unit is empty for a month or two, you will have less of a financial burden to cover compared to a single larger property. Because of the bigger cash flows, you can afford to hire management companies to manage your tenants, thus eliminating that hassle for you. You can focus on what you do best: invest.
There is less competition in attaining multi-family housing than there is in the single family housing market. Fewer real estate professionals are experienced in multi-family properties. Although the process for finding a multi-family home is very much like the process used to find a traditional, single-family unit, the commercial lending process is entirely different. Let us teach you how to be a smart investor and put multi-units in your portfolio along with single family houses. The best reason to invest in multi-family properties is that your financial gain is much bigger when you finally sell, which is the utmost goal as a successful investor.