Multifamily Properties: Better than Single-Home Investments?
2020 Outlook for Multifamily Investment Properties
Multifamily investment properties offer great returns for investors given the sustained demand (and limited supply) for rental spaces. Cap rates on multifamily investment properties are at a historical low!
The majority of renters in California pay 50% or more of their income on rent and utilities, according to Realtor Magazine. The article states that rent control measures are not a long-term solution to the housing shortage.
Rising rents need to be addressed by allowing higher-density housing near transportation hubs, establishing zoning opportunities that are financially viable for property investors, and reducing the approval time and construction delays for investment projects. This includes easing utility and parking regulations for ADUs.
For more information on adding value to your property through ADUs, read our article: What is an ADU and how is it increasing your property value?
Why Invest in Multifamily Investment Properties?
There are several advantages to investing in a multifamily property rather than single-unit properties.
While they are more expensive, they are A LOT EASIER to finance and get approved for a loan than the average home. A multifamily property generates a strong cash flow every month. A couple of vacancies are less likely to harm the monthly income as opposed to a tenant moving out of a single-family home, which would make that property 100% vacant. However, a ten unit property with one vacancy would only be 10% vacant.
This means its less risky for the lender and could even get you a more competitive interest rate.
Additionally, growing your real estate portfolio takes LESS Time. Think about it: acquiring a 10-unit apartment complex is a lot faster than closing on ten different houses.
Finding the Perfect Real Estate Agent
At Home Rentals LA, we make it easy for you to buy investment properties and keep it filled with quality tenants. Our large professional network of financial and home advisors will help you through every step of the process.
Then once your property is acquired, we will create massive visbility for your property with FREE marketing. We don't get paid if you don't get paid. We take care of all photography, showings, applications, credit checks, background checks and contracts. Just sit back and relax.
Build your No Vacancy Plan with Home Rentals LA. Start Today.