If you’ve decided to purchase a rental income property, but you’re wavering between the single-family and multifamily, you’ve come to the right place. In a head-to-head comparison, there are five simple reasons why a property investment with multiple units yields higher gains over the life of your investment:
1. More tenants lead to greater income potential.
Multifamily properties naturally require more renters, which leads to more rent collected. Also, vacancies aren’t a 100 percent income loss like with a single family. While more tenants also mean more need for maintenance and solid property management, building a great team from the beginning lessens any potential headaches.
2. Younger generations want apartments.
Younger generations don’t want to mess with maintenance, a house, or a yard. They’re also looking for amenities that only apartment communities offer. Apartment living is a primary choice for recent graduates and young professionals.
3. 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 amenities, convenience, and community, over retirement communities.
4. Multifamily requires on-site staff.
That’s not a negative. On-site staff means a core group of trained professionals will handle all maintenance and business aspects of your investment property. That’s a win for property owners. Building a reliable property management team reduces your day-to-day responsibilities. You can sit back, relax, and let your investment work for you.
5. 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 an 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, and that’s what it’s all about.
Class A Management Multifamily and Single-Family Investment Process
The Class A Management team is here to walk you through the investment process and property management lifecycle, including:
- assessment
- due diligence
- purchase decision, and
- everything that follows
Contact us today to learn more about building or expanding your investment portfolio through multifamily income properties.