There is an abundance of investment opportunities in today’s market, but one of the best and most profitable is the multi-family property market!
Investing in one of these properties can without doubt put you on the fast path to becoming financially independent. The possibility for just one property to explore is high, and it can sky rocket your wealth.
Due to a number of reason, today’s investment market can offer a host of unprecedented opportunities for the shrewd property investor.
Here are 9 reasons why you should begin to love these multi-family property investments:
1. First and foremost, they are an income-generating asset. Pure and simple. They can produce a nice tidy passive income each and every month. This way, you’d wouldn’t have to worry as much if you were suddenly laid off at work.
2. This type of property will pay for its own expenses. Therefore mortgage, taxes, payroll, landscaping and advertising is all paid from the money the property generates, and not out of your pocket.
3. Usually when tenants move out of a single-family property you end up not making any money. You could decrease your outgoings to make up for this, or you could take on more tenants. With multi-family properties, several tenants can move out and you will always have cash flow. Multiple tenants will mean that you risks are decreased.
4. A 10 unit complex is way more efficient to manage than the same number of single family homes that are pebble dashed all across a city or town. You will not only get better pricing from them, but you will receive a better quote from the contractors when they know you have multiple units.
5. Increasing income and decreasing expenses can be done so that the value of the property is increased overall, since its value is reached by subtracting the expenses from the gross income.
6. You can receive more income, not just from the rental money. This is called ancillary income and it can be generated from vending machines, faxing fees, and laundry services.
7. You can potentially get a loan a lot easier when you’re looking for a multi-family property to invest in. These loans are given out on the ability of the property to repay the debt itself. So your own personal credit history may not be taken into consideration when applying for a loan of this type.
8. Investors can grow their property portfolio by using a small piece of equity on an currently owned property to buy more properties.
9. You can get a nice sum of money back each year in the form of taxes due to property repairs etc. This means you will have more money in your pocket through deductions and depreciation.
If you think that investing in a multi-family property, then do your research and contact a specialist in the market to help you make the best decision you possibly can.