Skip to Content

Scaling Up: Investing in Multi-Family Properties

Exterior Shot of Locust Valley Multi-Family HousingIf you’re wanting to take your Locust Valley rental property business to the next level, you’re in luck. Though various rental property investors set out to invest in single-family homes, keeping an investment portfolio growing often means adding multi-family properties to the mix. This guide will walk you through how to scale your investments and obtain your first multi-family property. We’ll cover everything from finding the ideal property to financing and managing it competently. So, whether you’re a proficient investor or have barely begun, this guide has something for you!

Multi-family rental property investing, and why should you consider it?

Multi-family rental property investing is purchasing and managing multiple rental properties, often with two or more units. There are numerous reasons why this type of investing can be practical and beneficial:

  • With multiple units, you have higher returns than with single-family homes. This happens because you can collect rent from many tenants, which can help offset any vacancy costs.
  • Multi-family properties often appreciate at a better and higher rate than single-family homes so they can be a very good long-term investment.
  • They can be more trouble-free to manage than single-family rental properties on the account that the units usually have the same systems and appliances, etc.

Things to keep in mind when investing in a multi-family property

Before you initiate inquiring about that perfect multi-family property, there are a few things you’ll want to take into consideration:

  • Location is key. As with any rental property investment, the location of your multi-family home will be one of the essential factors in determining its success. Go in search of properties in areas with strong job growth and population density. These places will likely have a high demand for rental units, which can help you keep your units filled and lower vacancy rates.
  • Financing can be difficult. Multi-family properties can indeed be more expensive than single-family homes, so you have to be prepared with a larger down payment and/or a higher credit score. You may additionally need to get creative with your financing, like taking advantage of a home equity line of credit or private loans.
  • Management is key. Managing multiple rental units can be burdensome, so it’s vital to have an efficient Locust Valley property manager in place. Watch out for someone with experience working multi-family properties and a perfect track record of keeping units filled and tenants ecstatic.

How to find the right multi-family property for your needs

Now that you perceive what to always remember, it’s time to set off on the lookout for that excellent multi-family property. Here are a few tips on how to find the right one for your needs:

  • Use and apply online resources. The internet is the right tool for going in search of rental properties, and various websites and search engines are dedicated to this task. Try using keywords like “multi-family homes for sale” or “apartments for rent” to get going.
  • Call a real estate agent. If you’re hesitant about where to start your search, a real estate agent can be a beneficial resource. They’ll be knowledgeable of the local market and can help you determine properties that fit your budget and investment goals.
  • Drive around. One of the best means to see good rental properties is simply to drive around and watch out for “for rent” signs. This can be the best means to find properties off the beaten path that may not be listed online.

When you’ve spotted some potential properties, it’s time to get on evaluating them. Here are a small number of things to search for:

  • The condition of the property. Is it well-maintained or in need of repairs? Properties that need work can be a very good investment, but on the flip side, you need to factor in the cost of repairs when considering your return on investment.
  • The rental market in the area. Is there a big demand for rental units? What is the average rent for similar units in the area? Knowing and comprehending this data can help you price your units competitively and generate a beneficial return on investment.
  • The potential for appreciation. Is the property located in an area experiencing population growth or job growth? These factors can create increased demand for rental units and higher rents, leading to a higher investment return.

Scaling up your rental property investments can be the best approach to building wealth and securing your financial future. By following these tips, you can obtain the ideal multi-family property for your needs and begin establishing a healthy return on investment.

 

Another efficient way to find bargain properties and optimize your investment portfolio is to work with a rental market expert. Contact Real Property Management Unlimited at 516-875-1600 to learn more about all the great services we offer investors like you!

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details