Ruling out multifamily rental could be costly mistake
Since the economy recovery starting in 2009 Hedge funds, Financial institution and people with deep pockets are grabbing single family rental like never before and small real estate investors are losing out on deals. Instead of competing with investors with deep pockets small investors might want to consider diversifying into multifamily houses as investment opportunity.
Multifamily rental might be intimidating at first as to most small real estate investor looks as unaffordable option. But in many scenarios multifamily can be better investment than single family houses and comes packed with many benefits like city, county or state tax incentive, stable income, maintain value and much more.
Multiple Income: Instead of having one tenant and one rental check per month in single family rental, multifamily create multiple source of income. Vacancy in single family house will leads to complete loss of income, one vacancy in four unit complex you still have three rent coming in to pay expenses.
Buying in Bulk: The overall Price tag may be over whelming for small real estate investor but when you divide the price per unit it will work out lower then single family rental.
Economies of Scale: If you have four single family houses opposed to one four unit building, you have four roofs to be replaced, or repaired, four lawns to be maintain and six different locations.
As the cash flow is bigger in multifamily building, you can afford to hire management company to maintain building and manage tenants, thus eliminating the need of owner to be on call 24X7.
EquityBrick is here to assist small real estate investor to raise equity to acquire their next rental property.