Investing in Multi-Family Properties

Renting is on the rise and being a landlord can be a very profitable business. Corporations like Blackstone and Progress Residential have already capitalized on some of these opportunities as demand for homes surpasses the supply, forcing higher prices.

However, there are still plenty of opportunities for other investors to get into the market as well, especially with an impending foreclosure crisis. Continue reading to learn more about how to make money buying multi-family properties and why it’s a great investment strategy.

Multi-Family Properties

Multi-family properties offer steady streams of income. With multiple tenants, the likelihood of an empty property is incredibly low. The turnover time between tenants for a single unit is also relatively short in many places, which provides a level of consistency not found in single-family home rentals.

Increasing numbers of renters mean increasing demand. While the supply of multi-family properties is less limited than single-family homes, they aren’t limitless. This allows owners of rental properties to charge higher rent while still being able to fill units. While this increases the value of multi-family properties, it doesn’t change the price the owner originally paid for the property, leading to increased profits as rents rise.

Although the housing market, and therefore the rental market, is subject to sudden, unexpected changes like any other industry, people will always need shelter, making multi-family properties a consistent source of income even if property values drop.

Get Your Financing in Place

When you have your financing in order you can approach the deal with confidence and in a superior negotiating position with the seller. Having a competitive offer from the start, when bidding on a project that you know is profitable, is key to success. Along with your ability to truly close the deal on time without a lot of headaches and unnecessary paperwork is valuable to you as the investor and the seller. Having the right lender in your corner is important, Triton is a leading real estate private lender and can help create a personalized financing plan to make sure you have the best options available.