Facebook Twitter Instagram
    Trending
    • Yardi Says Multifamily Flat in February
    • Housing Starts & Permits Jump Up in February
    • U.S. Cities with the Highest GDP
    • Housing Costs are the Leading Increase in Inflation
    • Bankrate’s 2023 Annual Emergency Savings Report
    • Construction Employment Increases In 45 States Last Year
    • Tarek & Heather El Moussa’s First Flip Was a Flop
    • Immigration and Housing – What You Need to Know (part 1)
    Twitter
    Real Estate Investing Today
    • Home
    • RE Journal
    • ROI Magazine
    • National REIA
      • National REIA
      • Find a REIA near you!
    • Podcasts
    • Housing Data
    • Contact Us
    Real Estate Investing Today
    You are at:Home»Real Estate Blogger»Benefits of Investing in Multi-family Real Estate

    Benefits of Investing in Multi-family Real Estate

    0
    By Alex Capozzolo on June 23, 2021 Real Estate Blogger

    Benefits of Investing in Multi-family Real Estate
    By Alex Capozzolo

    As a real estate investor, you would want to invest in as many types of properties as you can. Most people who start out go for the single family homes first to invest in because they don’t have to worry about as much upkeep and they can purchase it directly from the owner. Many investors will say that there are some disadvantages of investing in a multi-family home but there are some perks that you can benefit from as a real estate investor. Below are a few reasons why investing in a multi-family property is a good thing.

    Location

    Having a multi-family property in the right location can be a sizable location. If you purchase an apartment building or even a complex in a major city more tenants will be attracted to staying in the most convenient areas or even areas closer to downtown. As a multi-family investor, you can price the leasing rates on rent based on how close to those areas the property is. Typically, young adults or people with higher class careers will pay more to stay in a luxury or new build apartment that is closer to downtown or the heavy populated areas.

    Steady Income

    With a multi-family property investment there will always be an opportunity to receive income. Even if there is one tenant who has not turned in their rent or another tenant who may be a few days late you will still have your other tenants who are likely to turn their rent in on time. With a single-family home if the tenant doesn’t turn in their rent you lose profit which could lead down a road to bigger problems. With millennials not ready to buy a home and retirees looking to downsize there will be plenty of opportunities for loyal paying tenants.

    Rent Increase

    Tenants who have been renting for a long time understand that at the start of every lease renewal there will be an increase on the rent. Many multi-family properties are offering short term lease renewals such as a six month or seven month lease which allows the property owner to increase the rent for that tenant within those months instead of a year. This is due to inflation and demands in the housing market. This will lead to a higher profit as the owner as they can change the prices at the same time that the market changes.

    Less Risky Loans

    With a large number of diverse tenants there is a small chance that a multi-family investor will receive a large loss in profit. When a person doesn’t pay their rent and the real-estate owner experiences rental income loss they typically have a longer period of time to retain the income or even gain another tenant. Property owners who typically keep their multi-family property in good shape, are more likely to have a constant flow of new tenants which means there is always profits coming in to make up for income loss and for any loans that have to be paid off.

     

    Alex Capozzolo is the owner of the Home Offer Solutions blog, a member of San Diego Creative Investors Association and a content writer for the real estate industry. Alex’s focus is on helping people through one of the most important investment decisions of their lifetime by seamlessly providing fast, honest, and professional real estate services.

     

    Share this:

    • Click to email a link to a friend (Opens in new window)
    • Click to print (Opens in new window)
    • Click to share on Twitter (Opens in new window)
    • Click to share on Facebook (Opens in new window)
    • Click to share on LinkedIn (Opens in new window)
    • Click to share on Pinterest (Opens in new window)
    • Click to share on Reddit (Opens in new window)

    Related

    Alex Capozzolo

    Alex Capozzolo is the owner of the Brotherly Love Real Estate blog, a member of San Diego Creative Investors Association and a content writer for the real estate industry. Alex’s focus is on helping people through one of the most important investment decisions of their lifetime by seamlessly providing fast, honest, and professional real estate services.

    Related Posts

    Yardi Says Multifamily Flat in February

    Housing Starts & Permits Jump Up in February

    U.S. Cities with the Highest GDP

    Comments are closed.

    Emergency Rental Assistance
    Action Alert HR 5013 – Seller Finance
    https://youtu.be/WP-IAtGnPsQ

    Click here to visit the National REIA Legislative Action Center.

    Stay Informed!

    Simply enter your email address in the space below to receive our latest posts right in your mailbox! It's FREE!

    Join 2,528 other subscribers
    Podcasts
    podcasts
    Survey of the Quarter:
    • Most Recent Posts
    March 20, 2023

    Yardi Says Multifamily Flat in February

    March 20, 2023

    Housing Starts & Permits Jump Up in February

    March 17, 2023

    U.S. Cities with the Highest GDP

    March 16, 2023

    Housing Costs are the Leading Increase in Inflation

    Benefits of Joining National REIA
    Click here to find a REIA!
    The Latest issue of the RE Journal
    REJ cover winter 22-23
    Follow us on Twitter: @REI2Day
    My Tweets
    Keyword Search
    Real Estate Investing Today
    National Real Estate Investors Association
    2755 Mansion Place
    Crestview Hills, KY 41017
    888-762-7342
    www.NationalREIA.org
    Top 100 Real Estate Investing Blogs & Websites on the Web
    Categories
    About Real Estate Investing Today

    Real Estate Investing Today is the news aggregation site for the National Real Estate Investors Association (NREIA) and features news & industry updates to help investors stay informed. Learn more at www.NationalREIA.org

    Media Inquiries

    Media Inquiries Click here

    Copyright 2022 Real Estate Investing Today

    • Home
    • News
    • Legislative
    • Market Trends
    • Residential
    • Data
    • Rentals
    • Crowdfunding
    • Legal
    • Regulations & Taxes
    • Infographics
    • Technology
    Copyright 2022 Real Estate Investing Today
    • Home
    • News
    • Legislative
    • Market Trends
    • Residential
    • Data
    • Rentals
    • Crowdfunding
    • Legal
    • Regulations & Taxes
    • Infographics
    • Technology

    Type above and press Enter to search. Press Esc to cancel.