Orange County Apartment Buildings vs Single Family Homes.
Orange County Buildings currently have low cap rates, and therefore higher purchase prices compared to much of the country. However the benefits to purchasing Multi-Family Property vs Single Family are compelling.
Benefits of Multi Family vs Single Family
Larger Income for Equal Value- One 750,000 4 plex will bring in more rental income then a 750,000 single family property.
Cheaper Renovaton- It is cheaper to prepare an apartment unit for a new tenant then a single family home. Single family properties are often held to a higher standard of landscapting, appearance and function. It costs more to paint, carpet, repair, etc a single family rental.
Self-Property Management- Can be easier as your rental units are all centrally located in one building, single family properties may be farther apart and therefore take more time and gas to manage. search orange county apartment buildings
Scaling up- It is easier to aquire more units faster, for less money per unit, and with better financing and cash flow.
Better Loan Terms-While the buyer’s balance sheet, reserves, operating experience is a factor, the most important qualifier is the Properties financials.
Cost Economy of Scale- One 50 unit apartment building can support its own manager, and maintenance and management staff, all centrally located in one location. Maintenance and management of 50 separate single family homes is substantially more expensive and difficult.
Control of It's Value- Single family home value are affected by a myriad of influences and intangibles. You have no control over the appreciation of a single family residence. Apartments on the other hand are valued primarily on Net Operating Income. If you can raise rents slightly, or decrease expenses there is a definitive increase in the value of your Apartment Building investment.
Southern California Apartment Buildings held their value very well compared to single family during the recent downturn. To search Orange County and Los Angeles County Apartment Buildings