Thursday, November 10, 2016

Thinking About Becoming an Investor of Multifamily-Housing Rental Property

NOW is an excellent time for becoming an investor of multifamily rental property. 
We are seeing a 6-year surge in apartment rentals. Why you say? Millennial renters, although we realized an increase in homeownership in 2016’s first two quarters we are seeing more and more households opting to rent instead of buying. There are many reason (see my last blog post) but overall this increasing market is looking more appealing to investor than ever before.

There are some HOT markets for buying multifamily units these are the top 5 in the nation.
  • Orlando, FL
  • Phoenix, AZ
  • Atlanta, GA
  • Fort Lauderdale, FL
  • Las Vegas, NV
If you are selling your multifamily units, you will do well if your property is in the Hottest selling market in the nation, these are the top 5 in the nation. 
  • New York City, NY
  • Pittsburg, PA
  • San Francisco, CA
  • Miami, FL
  • Nashville, TN
It is very important to do your due diligence and research the area and properties you are considering. Professional help from a Realtor can be useful but as an investor you don’t want to rely completely on anyone but yourself.

Location, Location, Location is always going to be the most important factor of any property you buy.

There are several tips about finding the best location.
  •        Finding the best property in the best neighborhood, or the worse property in the best neighborhood, because rehabbing a rundown property can make for a great investment if the location is in a well sought out area.
  •        Check with the Police or go to the library to see about the crime rate in the area before you buy. No one wants to rent in a high crime area.
  •        Check the schools and find out their state racking. Are they within walking distance from the property you are looking to buy.
  •        Parking is another very important factor, does your potential property have tenant parking for one or two vehicles or is it street parking only.
  •        You will need to know what the average rents in the neighborhood are producing. 
Investing in multi-family property can be very lucrative, but they can also be financially draining. Do your homework, find good professionals to work with you, a Realtor and a good loan broker, I am available if you need either.  Most investments properties require more money down then regular residential loans.
You will want to learn about managing a rental property and know the tenant/landlord laws in your state. You will need to decide if you will manage or you plan to hire a managing company to run your properties.

Get the facts and know what you are doing BEFORE you invest!

Here are some websites and organizations that can provide information.

Thank you for visiting my blog, please leave your comment and questions! Join my blog on the right to receive a notice when I have a new post.

Roxy Redenbaugh
ACMC Loan Consultant
Certified Mortgage Coach
Branch Manager
NMLS #269926

No comments: