Last year was a tough year for multi-unit properties, thanks to low rental incomes driven by unemployment and other difficulties. However, this type of property managed to weather the storm second only to industrial units.
Forecasters expect things to get back on track for this sector of the housing market and even predict a 6% increase in rentals during 2022.
So, if you’re looking to invest in this type of property, keep reading to find out how to purchase a multi-unit property and why it’s a good idea.
Defining Multi-Unit Properties
Multi-unit properties, also known as multi-family properties, are rental properties that are divided into several individual units that you can rent to different tenants. Examples of multi-unit properties are apartment buildings as well as freestanding duplexes and triplexes containing multiple dwellings.
Single unit properties cater to only one tenant at a time. Condos, townhouses, and vacation rentals fall into this category.
The Benefits of Owning Multi-Family Properties
It’s always best to work with an experienced real estate agent when you’re purchasing a multi-unit property. These experts know all the ins and outs of how to find a multi-unit property for sale and can guide you through this sometimes complex process.
Location is key when deciding on the perfect rental property for your investment portfolio, as a good location helps attract suitable, long-standing tenants.
Are you skeptical about the ROI on these expensive types of real estate? Check out these benefits of owning a multi-unit property that will help put your mind at ease.
Expensive, But Easy to Finance
While a single rental property can cost a little over $30,000, multi-unit properties often come with a six-figure price tag. Don’t worry if you’re wondering how to finance a multi-unit property.
Despite the high costs involved, you’ll get a mortgage more easily than when you’re applying to buy a single-family home.
Banks usually jump at the chance to help you pay for these types of properties. That’s because these properties already provide a steady stream of income every month.
Besides, when you lose a tenant in a single-family home, your income’s gone until you find a new one. There’s only a slim chance that all your tenants in a multi-use property will skip paying their rent at the same time.
This means less risk for the banks and can result in a better mortgage interest rate for you.
Grow Your Portfolio Quickly
It takes a long time to build up a property portfolio based on individual rental homes. When you buy a multi-family rental, you instantly have access to several rental properties.
You also won’t have to deal with the back and forth involved in buying individual rental properties.
You Can Afford a Property Manager
Managing rental properties can turn out to be a full-time job. When you only have a small portfolio, it often doesn’t make sense to hire a professional to do it for you.
With more units bringing in money, you can hire the services of experienced multi-unit property managers like Lincoln Property, Twin Cities Home Rental, or Greystar.
These professionals will find and screen tenants, collect rent, and handle unpleasant aspects like maintenance and evictions.
How to Select Best Construct for Multi-Unit Properties
If you are looking for any construct to build a multi-unit property, then selecting the best constructor is necessary. So, here we are mentioning some points that may help you to select the best layout:
- First, check the experience of the construct and their company. At least 5+ years of experience is necessary for assigning the project of multi-stored building.
- Now, select the top 5 constructors and ask for quotations with the best price from each.
- After this, compare the quotations of each constructor and try to find the best from them.
- You need to check the price, material used, and time they will take to complete the work. The raw material used will be the most important point while selecting the quotation. All other factors may be negligible, but the material should be of the best quality. The strength of the building is decided through the raw material; hence quality must be of more than average quality.
- Now, select the quotation and finalize the contractor and get your work starter asap.
These steps are needed to be followed well to build the prominent structure of your multi-unit property.
From where can I select the Constructor?
It depends on your approach that whether you want to go for online constructors or offline. Here is the difference between both:
- Online constructors are easy to find, and you can compare their work with other options. Also, reviews can be checked on the sites and select the contract with genuine reviews. Hence, online ways can be good to find a perfect constructor.
- And, if you want to go for offline mode, then you can go into the market and search for some constructors. Get reviews from the market and compare. At last, check the quotations given by different constructors and then decide the best.
Therefore, there are ways by which you can select the best constructor for your multi-unit property. So, choose the best option with correct ways for strong construction of the building.
Boost Your Property Investment Game
Multi-unit properties are only one way to get the most bang for your buck when it comes to investing.
For more inspiration and information on sound investments, browse some more of the articles in our finance and money section.