Multi unit investing can put you on the fast lane to becoming wealthy in the real estate business. Very simply, multi-units are commonly referred to as apartments or flats that provide housing for a group of tenants who pay a mortgage on the property they have bought, as well as pay for its maintenance as well. Let us look at five advantages of multi unit investing.
Greater Cash flow – Cash flow is significantly higher in a multi-family as the rental income is more. The more the units under one roof, the less the risk involved.
Economical to maintain – Having a six single-family houses in different areas rather than one six family unit under one roof means fixing six roofs, six lawns to maintain. In the six-family unit, tenants are located in a single place and there is only one roof and one lawn to maintain, which is very economical.
Competition is less – There is very minimal competition in this space and smart investors always have multi-units as part of their portfolios along with single units.
Easy and outsourced management – The increased cash flows will make it possible to hire management companies to manage the tenants.
Make huge profits at the time of selling – Multi-unit homes will always fetch more than single unit homes when the property is sold. The simple reason being the cost of an apartment complex is more than single-family homes, as are its chances of appreciation.
Though there are many more advantages, the aforementioned five are the biggest advantages of multi-units that can accelerate the wealth creation process for any real estate investor.