Multi-Family Properties Are Winners!


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Single family homes are great real estate investments. They are easy to maintain individually, and since there is only one family at a time to deal with, managing the property is usually easier for beginning real estate investors. Although renting one dingle family home at a time is a good place to start, it usually takes multiple single family homes for real estate investors to start making decent profits.

Multi-family properties take the same number of single family homes you would need to make a decent profit and squishes them together in one location. This solves a lot of problems that many real estate investors have with owning several single family homes.

Benefits of a Multi-Family Property

Less driving

When you own several single family homes, there is no guarantee that they will be in one single location. The majority of time they are spread over miles. This means that in order to maintain and properly manage them, you will spread enormous amounts of money on gas and lots of time traveling. Multifamily homes eliminate the necessity to drive miles and spend hours traveling.

Less percentage of vacancy

Every time one of your single family homes becomes vacant, you are earning zero dollars for that property, and you are at 100 percent vacancy. That means you have to come up with 100 percent of the money to pay for that property. In a multi-family property, unless every single one of the units is empty, you are going to at least have some income generated to help pay for the property. Your vacancy rate may only be 25 percent which means you will only be out of pocket only 25 percent of the amount for the property.

Less Repair Expense

When you are dealing with single family homes, you are responsible for 1 roof for every property in addition to 1 HVAC unit, plumbing, and electrical wiring per property. For one property this isn’t a terrible expense but when you own 7, 10, or 25 properties, this number can start creeping up quickly. With a multi-family home property, you are responsible for fewer roofs, less plumbing and wiring, as fewer HVAC units depending on the type/design of the properties.

Fewer Restrictions by Banks

Many times banks will limit the amount of single family homes that an individual can own. In some places, this number is anywhere from 4 to 6 residences. By owning multi-family units, you can get around this type of restriction.

Single family homes are fine for being investors, but the real money is to be made in multi-family properties. For more information, call or visit us at Homevestorsfranchise.com. We are the nation’s number one home buying franchise. We have the tools and resources to help you grow your real estate business. For more information on real estate investing or real estate franchises, call or visit us today.

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