Why Smaller Buildings Can Give the Same Benefits

Investors have been putting money into multifamily properties for a long time, but often consider the size of the properties to be more important in its profitability when most of the time it’s clearly not the case.

Multifamily properties are known to be large, spacious complexes such as apartments. So it must mean the larger the building, the more money it can rake in, right? Not so.

A smaller multifamily property can benefit just as much as a larger complex can.

Here are a few ways a smaller building benefits a multifamily property:

You won’t have much competition

You won’t find yourself at the back of a huge line when investing in a smaller multifamily property.

Unlike those of larger buildings, you won’t be scrounging for a place in the bidders' booth for these properties because they are usually sought out by lone investors instead of massive corporations who have them booked by the thousands. Meaning you’ll have more of a shot at making the investment first instead of being leagues too late.

They help you make more money

With larger units, you’ll find yourself waiting too long only to have meager payouts most of the time.

This isn’t the case with smaller buildings, as the payout is more plentiful for each unit and it usually comes out sooner, usually within a month at least. Not to mention these buildings are easier to buy out than with larger complexes due to less equity needed to purchase them.

Less worry about space

One of the bigger concerns in larger buildings is how much space there is, and it’s usually not considered what to put in it until the space gets stuffed out in the end anyway.

Smaller units of multifamily properties usually put less worry on the space (since there isn’t much anyway) and are more concerned about what exactly goes into what space it does have.

It’s never how much area you cover, it’s what you cover the area with.

They are more common

It’s usually a lot harder for you to find larger multifamily properties.

When seeking out the smaller properties to invest in, it’s really not that difficult to find one. You can find one as close to you as right next to your backyard. And they can be as common as an old work building, an abandoned complex, or even a shut-down apartment.

Much easier to find than spacious factory-sized units and sometimes they can even be yours to put money into as soon as you find them. It’s all about the locale!

Smaller-sized multifamily properties are usually avoided by investors due to the less-imposing stature they give out, but if you give them a chance you might find a whole flow of cash just waiting on you that other investors may have sorely missed out.

So why not give them a go? Any investment in any property carries risk, but it’s the reward that you may get that can make it all worth it in the end.