Multi-Family Real Estate Investing

Individuals with a wealth of investing knowledge typically view real estate as one of the most financially secure investment opportunities out there. More often than not, a property retains its value after being purchased, and even appreciates over time. This is especially true when in investing in multi-family real estate. So long as you pay your mortgage every month and are properly insured, there are very little possibilities that your investment turns into a total loss.

Keep in mind that people will always need a place to live, thus making this a sound investment. With that said, investors are beginning to put their money toward multi-family real estate now more than ever. One of the greatest benefits that come with doing so is the fact that investors often begin to make money immediately.

Multi-family properties may be more expensive, but they are much easier to finance. What should not come as a surprise to many, apartment buildings and condominiums come at much higher prices than those of residential properties. However, this should not deter investors who may think single-family homes would be a less expensive investment. Banks are much more likely to distribute loans to those investing in multi-family real estate rather than residential homes due to its consistent cash flow.

Another benefit that comes with investing in multi-family properties is the decreased risk. Take for example, a single-family home in which the renters decide to leave. That property is now entirely vacant, whereas a family leaving a home within a multi-family residence would only result in a fraction of that property’s homes being left unoccupied. This directly translates to a lower risk of foreclosure.

Getting started is much easier than one may think, which is another reason why investing in real estate has become so popular. It does not require a six-figure salary or millions of dollars to spare. There are several financial options available for those who may not be able to afford their first investments right out of the gate, such as non-recourse or personal loans. If you are granted a mortgage, most properties only require a downpayment of at least 20%, which you can then finance with a low-interest mortgage.

There are a number of tax deductions that are given to real estate investors as well. Some of those that they can claim include interest paid, any property taxes, insurance, repairs, and even travel costs as long as they pertain to the business itself.

Given how important work-life balance has become in the past decade, another benefit that comes with real estate investing, multi-family or residential, is the flexible hours and time put in. This, of course, depends on what you invest in and how involved you choose to be. Fixer-uppers or properties that require regular maintenance will be much more time consuming than other investments, which can be used as passive sources of income for investors.

Multi-family real estate is a field that every investor should at least look into, weighing the pros and cons accordingly. There is a large variety of choices in the world of real estate, which comes with varying risks and benefits. Investors of all kinds can find an area that best suits their needs, and thus, their target revenue.