Multi-family rental properties offer a more reliable and profitable investment option versus the common single-family home investment. In this article, we shed light on the pros of multi-family property investments and how they offer a more consistent, reliable and profitable return on investment – particularly in a time of economic uncertainty.
Here are some reasons why:
Stability & Consistency
Markets are unpredictable, and investors seek consistent income. In the case of a single-family home, if a tenant is suddenly unable to pay rent, the responsibility of the mortgage falls back onto the lap of the investor. On the other hand, with a multi-family property, there will always be income. Offering multiple rental units generates several multiples’ worth of additional income. Likewise, the ability to rent out several units also provides investors with multiple opportunities to reduce vacancy rate, allay expenses and offset general risk. Reliable, regular cash flow, appreciation, mortgage pay down, and annual tax advantages make multi-family investing notably less risky.
It is significantly easier to secure one loan for one multi-unit apartment than it is for separate single units. Furthermore, working with one seller and undergoing one inspection is significantly less complicated than managing numerous units across multiple single-family investment properties.
Assistance & Stewardship
Investing in multi-family real estate might sound cost prohibitive, but in reality, these investments are quite attainable and can be relatively hassle-free. With the guidance and assistance of an asset manager, such as Cacoeli, investors can escape cumbersome managerial responsibilities. Multi-unit properties are typically owned by a General Partner (GP), such as Cacoeli. The GP manages all aspects of the investment – from finding the building to maintaining it. Investors can rest assured knowing that a trusted asset manager is stewarding and safeguarding their capital throughout the investment term.