4 Factors to Consider When Purchasing a Multifamily Property
Many investors are investing in multifamily properties that not only show a slow and steady appreciation in value, but also provide an additional source of monthly income. If you too are planning to invest in a multifamily property, here are a few factors you must consider when purchasing a multifamily property.
The demand for multifamily units on rent is increasing by the day as a large number of millennials are choosing to renting over buying. Though the demand is high, you still need to make sure that your property is more rentable than other multi family properties in its neighbourhood. Consider factors such as landscaping, available amenities and others, that help increase the rentability of any property.
Even if you have one of the most posh buildings in your area with all the amenities, lightning, landscaping that renters look for, many renters may still not want to rent a unit your multifamily building if the neighborhood is not good. Before you invest in a multifamily property, take a stroll in the neighbourhood to ensure it is clean. You may also want to talk to the people in that area to understand if the area has any potential issues that residents have to deal with.
It’s always a good idea to buy a multifamily property in an area that is close to where you live. If you have more than one multifamily property then it would be great if they are all in the same area, as it will be easier to manage. If that’s not possible, or if your work schedule is a problem, then look for a multifamily property management company that can take the stress out of managing a property.
4. Entry Price
Investing in a multifamily property is one way of accumulating long term wealth, however, ‘one wrong buying decision,’ and it can weigh your entire portfolio down. After the real estate debacle in 2007-08, that saw the prices of properties plummet from their lifetime highs, investors need to be wary of the entry price. If you think that the property you are planning to purchase has seen an unreasonable hike in price, then it would be wise to steer clear of such a property.
Get a Renovation Quote First!
If you are in the process of buying a multifamily property or have recently bought one, get in touch with us at United Renovation, an affordable housing renovation services, to know if the property needs any renovations or repairs. We will give you one of the most reasonable quotes in Carrollton, Texas and nearby areas. Should you wish to learn more about our multi family renovation services, fill out our contact form or simply call (972) 818-1065/ (972) 818-1069/ (866) 428-1065.