Are multifamily properties a good first time real estate investment?

Are you thinking about investing in real estate but you can’t decide if multifamily properties will make a good first time investment?

In this article we will share with you some reasons to consider investing in multifamily rental properties.

More Cash Flow

Perhaps the best pro multifamily has going for it is the cash flow. Because there are multiple units, there is more cash flow. There’s not necessarily a better return on investment, but more cash flow. There is simply more cash coming into your pocket every month because you have more people paying you. A single family home, while it may offer a better return, will generally not generate as much cash.

Everything in One Place

With a multifamily property, there is only one lawn. There is only one roof. There may be only one water heater or HVAC unit. There is only one place to drive to. There is only one place to check on. In sum, almost everything is contained, which could help keep your maintenance and operating costs down. Single-family properties can be scattered all over the place. Plus, they all have the same components as multifamily properties, such as roofs and lawns; there are just more of them.

Rarely Completely Vacant

Tenants move and create vacancies. But multifamily properties are rarely ever completely vacant. This means there is always some cash flowing in, and someone is there to help prevent theft and vandalism. This is not the case with single-family properties and commercial storefronts. When they are vacant, they are empty—sometimes for a long while.

Fairly Easy to Find Tenants

Everyone needs a place to live, and as long as you invest in a decent area and have a decent property, you should be able to find rent-paying tenants. Doing this with other types of properties, such as commercial, is not always so easy.

Live in One of the Units

Living in one of the units may actually be a great advantage, especially for a first-time investor. For one thing, you can get similar types of loans for smaller multifamily buildings (duplexes, triplexes and quadplexes) as you can for single-family dwellings. This helps keep your costs down. Further, if you live in one of the units, you can count the rental income from the other units on your loan application, helping you acquire the property.

Source – Bigger Pockets

Contact RPM Central Valley

To learn more reasons to invest in multifamily properties, or to speak with us about the property management services we can offer you, contact us today by calling (209) 572-2222 or click here to connect with us online.