Are you planning on expanding your portfolio of investment properties in 2021? If so, you may be wondering if Apartments Vs. Houses are the best real estate investment.
Before purchasing your next property, it’s important to analyze if that property is right for you because if you’re unprepared for the maintenance or management costs, you’re going to lose money quickly.
In today’s blog post, we will provide you with tips on apartments vs. houses and which property makes the best investment.
Should You Invest In Apartments Vs. Houses?
Houses – There’s no denying that houses are ideal, especially for first-time real estate investors because it’s often easier to get started with investing in a house than it is to invest in a multifamily property.
What’s ideal about houses is that they offer independent living, plenty of space for parking, and a front yard/back yard to enjoy time outdoors.
Be careful about investing in houses that are within the bounds of Homeowner Associations because if the house is part of an HOA, it could be difficult for you to renovate or make the repairs to the property that you want to make.
The downside of owning a rental house is that when the property is vacant, you’re not going to be earning any cash flow from that property every month.
To avoid getting stuck with long-vacant periods that your house isn’t earning rental income, it’s best to focus on approaching your tenant at least 90 days in advance to see if they plan on renewing their lease because if they don’t intend to renew, you have more time to prepare for marketing the property and finding your next tenant.
Apartments – Although they can be expensive to invest in (depending on location), apartments are an ideal real estate investment because of the simple fact that when you have more doors, you have more income from one property.
The key to success with purchasing an Apartments Vs. Houses building, as with any property, is to focus on due diligence. This means taking the time to choose a property that’s in a great area, have the property professionally inspected, and take the time to review the rent roll before investing in the property.
Ultimately, your decision to invest in a single-family vs. multifamily property is up to you. The most important takeaway from this article is that regardless of which property you invest in, you should focus on hiring a property manager to professionally manage that property for you.
A property manager will save you the time, money, and hassle of managing your investment property yourself so that you can focus on growing your portfolio of income properties.
Contact RPM Central Valley
For more information on Apartments Vs. Houses, or to speak with us about the services that we can offer you, contact us today by calling (209) 572-2222 or click here to connect with us online.