Multifamily residencies are one of the most popular types of real estate in densely populated cities and, therefore, can be one of the easiest types of commercial real estate to finance and one of the most lucrative one can invest in (depending on the state and city). If you’re looking to invest in multifamily residences, it’s a good idea to use a property management company to take care of the real estate, especially if it’s in another city.
Advantages & Multifamily Property Types
There are multiple advantages to investing in the multifamily real estate. One of the advantages is financing the real estate. It’s usually easier to be approved a loan by the bank for multifamily residencies than for a single-family estate, because of the expected rent payments which would come from the multifamily estate. Another advantage, which is especially interesting to investors that are new to the real estate market, is that it takes less time to grow a portfolio. Instead of acquiring ten houses and going through the processes of inspections and multiple contracts, one acquires one multifamily residency and still has ten houses.
There are various types of multifamily properties. All should be considered if one is looking to invest in these types of properties. We can advise you which type of property would work best for your situation, as well as coming up with a strategy to ensure minimization of unnecessary costs, improving efficiency and with that, ensuring the most benefits.
Student Housing, Regular Apartments, and Senior Apartments
In every densely populated city there are apartments and student apartments or housing. Many colleges and universities have on-campus housing, but there are also a lot of options in the area around the campus. This type of real estate is a growing market with more students applying to colleges far from home every day.
Regular apartments are all over smaller and bigger cities and can be located in city centers and outskirts. Generally, the location and size of these apartments determine the price. This also applies to senior housing. Right now, senior houses are evolving and aren’t the old inexpensive real estate types anymore. Some are luxurious and some are more classic.
The Right Investment
It’s of utmost importance to choose the right commercial real estate, even when it’s multifamily real estate. One should know the market, be able to jump through various hoops and be able to face challenges that may emerge during the process. During these stages, we can advise you and help you to find the right property for you, in order for you to avoid bad investments and for you to grow a good portfolio if desired. Multifamily real estate can be complex, but lucrative and, therefore, we recommend being well advised on the pre-buying process and the buying process.
To learn more about investing and managing multifamily real estate contact us here.