HAVE YOU EVER CONSIDERED OWNING MULTIFAMILY PROPERTIES?

By
Commercial Real Estate Agent with Santana Property Group

 

Multifamily property ownership will provide an investor with a great counterweight to a sagging economy. It is one of the best ways to build a Real Estate portfolio offering a solid return (cap rate) on your investment.  Owning several units will give you a greater income cash flow to cover your expenses including debt support and provide you with a larger profit margin that would enable you to purchase more multifamily properties.

A huge advantage of owning several units is that if you have a vacancy, your other units still generate the income you need to maintain your property.  If you owned several single family homes for income versus a multifamily property, a single vacancy is a 100% income loss.  A multifamily unit vacancy, while it is also a loss of income, is offset by the income of the other units; thereby reducing your risk.

Multifamily properties with a minimum of 10 units can generate enough income to    allow you to hire a property management company to maintain your property on a daily basis, while allowing you to sit back and enjoy the profits. Multifamily properties will never lose their appeal since there will always be a need for rental units.

It is imperative, however, that you extensively research any property you are considering purchasing.  You must be able to satisfactorily answer the following basic questions:

 

  1.   Is the property located in a good area?
  2.   Is the vacancy rate normal or excessive?
  3.   Is the property in good condition or require extensive capital to improve?
  4.   Is the value of the property reflected properly in the price?

 

 

Santana Property Group specializes in the sale of multifamily properties in the New York area, and can provide you with professional guidance in your purchase or sale.

 

 

 

 

 

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Start with a need...end with a deal

Comments (4)

Dana Ash-McGinty
ASH MCGINTY - Washington, DC
Principal Broker

Great post. I often sell multi-family properties. Although, I tend to stick with 4-units and under because financing is easier (as a residential property). Good points.

 

  

Apr 06, 2010 07:22 AM
Mercedes E. Santana
Santana Property Group - New York, NY
NYC Multifamily Properties

Thank you Dana.  Multifamily properties are well worth it as you know.

Apr 06, 2010 07:35 AM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

As long as you get positive cash flow...

Great post!

Aug 02, 2010 09:05 PM
Mercedes E. Santana
Santana Property Group - New York, NY
NYC Multifamily Properties

Joshua, you are so right. That positive cash flow could most certainly lead the way to increase your portfolio with other multi-family properties.

Aug 08, 2010 09:34 AM