What are the Benefits of Going for Multifamily Real Estate Investing?

Published May 17, 2017
by Mark Kenney

What are the Benefits of Going for Multifamily Real Estate Investing? – When you have money to invest, most people look towards real estate as the safest investment bet. This is largely due to a number of different factors. The simplest fact about real estate investment is that it is real; it isn’t a perishable item or something that can lose value with time. In real estate investment, the dilemma is always between single family real estate investment and multifamily real estate investment.

Most people who are inclined towards the later are looking for answers regarding the benefits that one has over the other. Here is an answer to the much talked about question, what are the benefits of investing in multifamily real estate.

Chance to Avail Better Economies of Sales

Multifamily real estate means investing in smaller homes, such as apartments, flats and multiple housing units instead of a single home. The more the homes, the more walls, roofs, floors, stairs, etc. that require maintenance. As a single homeowner, it is hard to get a discount on repairing services. However, for investors who have multiple homes to refurbish and renovate, there is a better chance of getting steeper discounts and being able to employ more professional firms that work on large scale projects instead of single homes.

Increased Cash Flow

There are two ways to improve cash flow for a business or investment, one can either decrease the outflow of cash or increase the inflow. With real estate investment, it is the latter. The cash flow for multi unit buildings is greater because more homes translates into more rents and quite simply more cash in the rolling than rent from a single home could muster.

Evenly Spread Your Risk

Some investors invest in a property with the aim of selling it in the future when it has made a greater profit, while others invest in a property because they aim to live off the proceeds of rent from the property. In either case, putting all your eggs in one basket isn’t the best investment strategy.

A good way to safeguard your investment is to invest in multifamily real estate. This way, even if one of the tenants is unable to pay or defaults, there are other rent payments to fall back on. Similarly, the slightest of increasing in property price for a single home, is multiplied with multifamily homes through their sheer volume.

If you are looking to invest in multifamily real estate, talk to the experts for more details.

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About the Author

Mark Kenney
Mark Kenney is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 25 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion for helping others succeed in the multifamily arena.