If you’ve decided to purchase a rental income property, but you’re wavering between the single-family and multi-family, you’ve come to the right place. In a head-to-head comparison, there are five simple reasons why a bigger investment now yields higher gains over the life of your investment:
- More tenants lead to greater income potential. Multi-family properties naturally require more renters, which leads to more rent collected. Also, vacancies aren’t a 100 percent income loss like with single family. While more tenants also means more need for maintenance and solid property management, building a great team from the beginning lessens any potential headaches.
- Younger generations want apartments. They don’t want to mess with maintenance or a house or a yard, and they want amenities that only apartment communities offer. Generation Y has affectionately become known around the world as Generation Rent.
- Multifamily communities appeal to downsizing Baby Boomers. For many of the same reasons as their younger counterparts, Boomers want apartments as they downsize from their high-maintenance family homes. In growing numbers, these young-at-heart retirees choose communities that offer great amenities, convenience, and community, rather than retirement communities.
- Multifamily requires on-site staff. That’s not a negative. It means that a core group of trained professionals will handle all of the maintenance and business aspects of your rental. That’s a win for property owners.
- Per rental unit, multifamily is a better deal. If you were to purchase 150 single-family rental units, you’d pay a pretty penny for that investment. Multifamily offers efficiency of scale in a compact package, and can compete price-wise with even one single family property any day. This means you’ll get a quicker and more substantial return on investment with multifamily, and that’s what it’s all about.
We’re here to walk you through the investment process, including assessment, due diligence, the purchase decision, and everything that follows in the multifamily property management lifecycle. Call us at 817-284-1411 or send an email to email@example.com.