Multi-Family Real Estate Investment
Multi-Family Properties
Real estate investments make for a great alternative for those looking to diversify their portfolio and invest in something less volatile than the stock market. Multi-family properties offer unique benefits for investment that include steady appreciation and stable monthly income for multiple residents. At RMT Equity Partners, we understand the importance of a secure and profitable investment. That’s why we go to great lengths to identify the most advantageous markets and neighborhoods by using our expert proprietary analysis techniques. This will ensure investments in properties that have both a low purchase price but high potential for rental growth.
Diversify Your Investment Portfolio
Increase Your Income
Improve Multiple Lives
Real estate is a great alternative for investors who wish to take an active role in growing their capital rather than passively putting money into a fund that is managed by someone else. The potential return on investment can be substantial, acting as a second income and a great way to save for retirement.
We believe that real estate investing is a strategy that can be successfully used to diversify your investment portfolio, and also holds great potential for offering return on investment for property that is “flipped” or renovated to appeal to new renters and even new owners if you plan on selling. Investing in multi-family rentals is also typically easier to finance compound returns more quickly, and tend to benefit from economies of scale.
The cost of acquiring an apartment building can be significantly higher than the cost of investing in a single-family home, as a one-unit rental could cost investors as little as $30,000, while the cost of a multi-family building can go well up in the millions. Because they tend to be more expensive, many investors are discouraged and opt for another course of investment opportunity. The truth is that because a multi-family property consistently generates a stronger cash flow every month, they are more likely to be approved by a bank for a loan than the average home.
The same cannot be said for a single-unit property because when a family moves out, the property becomes 100% vacant, where in multi-family units, there are a handful of tenants who are still providing cash flow even if one moves out. This helps the investor out further because the likelihood of a foreclosure on an apartment building is not as high as it would be for a single-family rental. In addition to providing a higher monthly rental income, there is also a lower total maintenance cost. What’s more is that multi-family real estate works in the investor's favor because the property results in more competitive interest rates. While it is a larger investment up front, it is a less risky one at that.
More Cash Flow
This doesn’t necessarily mean a larger return on investment, rather, it’s more money that enters your pocket every month because you have multiple units, and thus more people paying you. A single-family unit will not generate as much cash flow. Single-family units can go vacant, leaving you with no monthly cash flow, while multi-family units will usually always have tenants within, providing you with a more protected monthly income.
Fairly Easy to Find Tenants
Everyone needs a place to live, and if you’ve invested in a multi-family rental unit in a nicer area and the property itself is decent, you shouldn’t have much of a problem finding tenants. While these tenants come and go, you have a higher chance of filling your units with rent-paying tenants. Other types of property, like single-family units, might not be as easy to fill.
Grow Your Portfolio In Less Time
Investors who want to grow a larger portfolio can find solace in the advantages of multi-family real estate. It is much easier to acquire a 20-unit apartment building and takes less time than trying to find 20 different single-family homes. Further, you won’t need to work back and forth with several different sellers, conduct inspections on 20 houses, each located at different addresses, and won’t need to open up 20 separate loans for each property.
Improve Multiple Lives
Providing clean, safe, and desirable housing options for families not only helps to add value to your investment, but it adds value to the community.