Real estate offers a much more stable way of investing one’s money than other investment platforms. A big advantage of real estate investing is the fact that it allows you to make money in several ways. One way – buying multifamily homes – offers unique advantages over other types of real estate investing. While not for everyone, these advantages are definitely worth exploring. Here are four reasons you may want to consider investing in multifamily homes.
1. More Money Coming In
While multifamily homes may not be as good a return on your investment as single-family homes are, these properties almost always have a better cash flow. The reason is obvious – there are more tenants paying you rent each month.
2. It’s More Convenient
Multifamily dwellings only have one lawn, one roof, one HVAC unit, etc. Everything is in one place, making it easy (and probably cheaper) to maintain the property. If you own more than one single-family home, they are likely spread all over the place, and with each one having all of these things too, it’s easy to see how quickly expenses and time can add up when it’s time to maintain or repair them.
3. Vacancies Aren’t As Detrimental
Tenants move out. It’s the nature of the beast, but when they leave a multifamily property, there’s always the other tenants living in the other units that continue to pay rent each month. With single-family homes, however, vacancies can last a long time, costing you money.
Another advantage to this point – it’s often easier to find new tenants for multifamily properties than it is for single-family homes.
4. You Can Live In One Of The Apartments
For first-time investors, this may be the biggest advantage of investing in multifamily homes. Living in one of the units, you can qualify for the same types of loans you’d get when purchasing a single-family home, making it less expensive overall. Secondly, living in one of the units allows you to count the rental income from the other units on your loan application, which might make it easier for you to acquire the property.
Multifamily home investing isn’t for everyone, but for many investors, it’s a great way to make money fast. If you’re thinking of investing in real estate, consider the advantages listed above as you figure out what type of property you want to invest in.