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Sustainable Multifamily Goes Mainstream

Sustainable Multifamily Goes Mainstream

Apartment buildings are the perfect proving grounds for sustainable building design, benefitting renters and property owners alike. Today’s designers are incorporating sustainably-sourced building materials and green public areas into energy-efficient buildings that save tenants money. These forward-thinking sustainable multifamily properties are growing more popular each year with dedicated renters, and that’s positive news for occupancy rates and market value.

Green upgrades for everyone

The best recycling in the building industry is re-using an existing property and expertly leveraging energy efficiency upgrades and healthy building design. Replacement windows and a move to LED lighting are easy and inexpensive ways for property owners to begin. When it’s time to upgrade exteriors, insulation, roofs, or interiors, choosing sustainably-sourced materials that contribute to a healthy home, and the planet, is easier than ever. If you already own an investment property, upgrading to a more sustainable multifamily property may be easier than you think. 

Next step: Passive design

Naturally, as sustainable building standards tighten, builders are challenged to outdo themselves as they now strive for passively designed buildings. Passive design uses solar heat gains to heat and adequate shade and ventilation to cool the living space. Along with insulation and structure sealing, or encapsulation, requirements, this industry trend hasn’t been affordable until recently. 

New building projects using passive design don’t have high-end surfaces, but energy savings and indoor air quality are becoming the most popular industry trends. 

Creating sustainable multifamily spaces is possible with our help

Energy-conserving shared walls come with some challenges unique to sustainable multifamily properties. If you don’t know where to start when incorporating some environmentally friendly improvements into your property, contact Class A Management. Our managers can address the sustainability of your property and help you conserve a lot of energy, reducing overall management costs and increasing your returns. 

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Multifamily vs. Single-family Investments: 5 Reasons Multi Wins

Multifamily vs. Single-family Investments: 5 Reasons Multi Wins

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. 

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Multi-family Property Makes Cents

Multi-family Property Makes Cents

A multi-family property can be a lucrative investment. Dоwnturns іn thе есоnоmу have become all too commonplace. Yet, while markets ebb and flow, real estate investments offer greater versatility to the avid investor. Follow the need for housing rather than gambling on the latest trend. Tаke аdvаntаgе оf орроrtunіtу durіng any rесеssіоn by shifting your fосus to income properties.

Investment opportunities

Adding rental property investment to your portfolio can decrease risk during uncertain times. New real estate gives the investor many routes to prosperity. Multi-family housing ranges from duplexes to high-rise condominiums

The guidelines below offer a fresh perspective on the benefits of property investment.

  • Саshflоw is thе mаіn rеаsоn to іnvеst іn rеаl еstаtе. Іnvеstіng іn араrtmеnts increases саshflоw sіmрlу bесаusе thеrе аrе mоrе fаmіlіеs undеr thе оnе rооf gеnеrаtіng mоrе rеnts fоr уоu еvеrу mоnth.
  • Invest with lеss rіsk. Моst реорlе thіnk thе bіggеr mоrtgаgе and dеbt equals a greater rіsk. Yet, the opposite is true. Whеn уоu buу араrtmеnt buіldіngs уоur rіsk оf vасаnсіеs аnd mоnthlу overhead аrе sрrеаd оvеr multірlе tеnаnts. 
  • Bеnеfіt frоm есоnоmіеs оf sсаlе. Тhе mоrе unіts іn а соmрlех, thе grеаtеr thе есоnоmіеs оf sсаlе (uр tо а роіnt). In lаrgеr араrtmеnt іnvеstmеnts, thе реr unіt ехреnsеs аrе lоwеr lеаvіng mоrе іnсоmе аvаіlаblе fоr the investor. The lоwеr ехреnsеs реr unіt the hіghеr оvеrаll саshflоw. 

For long-term investors, multi-family properties make sense. They can leverage the strоngеr саsh flоw frееd uр bу есоnоmіеs оf sсаlе tо hіrе а соmреtеnt, рrоfеssіоnаl рrореrtу mаnаgеmеnt соmраnу like Class A Management.

Multi-family property management

A professional property management company manages all aspects of the investment. So, handing off these responsibilities аllоws уоu time to manage more important things like family, travel, and other investments.

Class A Management has the expertise to handle every step of the property investment process. From acquisitions and renovations to day-to-day management duties, our team of professionals minds the details so you can just sit back and watch your portfolio grow. 

Contact us today to speak with a knowledgeable team member about your current property investments or opportunities to expand your holdings.

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Building a multifamily strategy from the ground, up

Multifamily strategy development

Real estate investing carries a daunting learning curve. But relax: you don’t need to know everything. If your focus is multifamily investing, we’re about to straighten out that curve a bit by taking you through this tri-level approach to building a multifamily strategy.

The Foundation: Know the Market

Rents in your area will be based upon local demographics and demand for apartments. Do a little research to find out which properties are the “hottest” in your area, and find out why. Do your local renters want luxury, or are they looking for walkability and convenience? Start looking for properties according to what renters want, and what’s forecasted to remain in demand for at least 10 years.

The Ground Floor: Choose Your Scale

Multifamily doesn’t only include apartment complexes with a few hundred units. Smaller complexes with fewer than 50 units, and even properties with 2-4 units, offer the economy of scale that makes multifamily so lucrative for investors. More units involve a larger initial investment, more liability, and more potential income for the investor. Decide what level of financing and risk you’re most comfortable with, and go from there. A good financial advisor can really help narrow down your choices at this level of planning.

The Top Floor: Buy, Sell, Flip

Again, decide how involved you’d like to be in the daily ins and outs of multifamily investing before you decide what you’ll do with your investment. In its purest form, real estate investing is a “buy and hold” proposition. You’ll build wealth from tenant rent, and eventually, if you’ve made a good deal, you’ll sell your property for a profit. Flipping properties is popular these days thanks to reality television, but the scale is much bigger, the investment more substantial, and the timeline longer for multifamily flips.

Whatever your approach to developing the best multifamily investing strategy for your portfolio, take that research and turn it into a workable business plan that includes viable exit strategies for every situation. That guarantees that you maximize income and profit by knowing when it’s time to buy more property—and when it’s time to sell.

The Super Special, Secret Floor

This floor is when you realize the best multifamily strategy involves working with a property management company that knows these investments and helps you get the most from the investment. Reach out to us at Class A Management today to learn more.

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3 reasons why multifamily makes the best real estate investment

Why multifamily? Found out here.

Investors know that volatile markets can send financial gains plummeting, but real estate investing is typically a viable shelter that appreciates in value. Let’s explore four reasons why multifamily is the best investment in the real estate market.

Less risk for lenders means easier financing

Multifamily properties like apartment complexes require a higher initial investment than single-family real estate properties. That might seem like a deal-breaker, but the reality is that while multi-family loans are larger, they’re less risky for lenders because they generate cash flow even when not fully occupied. A single-family home, on the other hand, could be seen as high-risk because, when vacant, it generates no cash flow and carries a higher probability of borrower default.

Higher occupancy equals cash flow for landlords

High occupancy rates are the primary goal with rental property investments, but a single-family home that is unoccupied is a liability that many investors cannot afford to risk. While rents may offer a higher profit margin for single-family properties, multi-family rentals are more affordable for prospective tenants and easier to market for more stable income. Granted, there will always be certain markets in which single-family properties are in high demand, but a successful multi-family investment property rarely sees occupancy rates that result in negative cash flow.

Ease of maintenance and upgrades

Attached multi-family properties are also easier to maintain due to efficiency of scale. Any real estate investment will require regular maintenance such as roofing repair and replacement, and that’s where multi-family properties help investors save money by sharing a common roof. Owners can also save on other upgrades like windows and doors, insulation, and exterior painting for multiple rentals within a single building.

Full service property management

Hiring a property management company is always a good move for multi-family investors who don’t want to spend their time marketing, collecting rent, and performing maintenance and repairs. Class A Management professionals are prepared to handle all the details, from pre-purchase consulting to deciding when it’s time to sell, and everything in between. Contact us today to learn more about how to maximize your return on investment with a team that wrote the book on multi-family property management best practices.