Advantages of Multi-Family Properties (Part 2)

Advantages of Multi-Family Properties (Part 2)

1. Scale faster Say you want to grow your real estate portfolio by 10 units. With single-family rental properties, you’d have to find 10 separate houses. That’s 10 different sellers, 10 different inspections, and potentially 10 different mortgages. Purchase a 10-unit apartment building, however, and just like that — you’re now the proud owner of 10 rental units. Lenders might want to take a closer look under your financial hood when you’re trying to close on an MFR, but it’s potentially a lot less hassle compared to investing in an equal number of SFR units.  2. Beneficial Economies of Scale…
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Single Family VS. Multi-Family Rentals — What You Need to Know! (Part 1)

Single Family VS. Multi-Family Rentals — What You Need to Know! (Part 1)

Should you invest in single-family rental properties or multifamily rental properties? When it comes to residential real estate, this is the debate among new and seasoned investors alike. While you can sift through juxtaposing opinions in online forums until you’re blue in the face, at the end of the day, it boils down to your personal criteria and investing goals. In this article we will analyze single-family rental (SFR) versus multifamily rental (MFR) properties, so you can choose the best route for you. Advantages of Single-Family Rentals: 1. Less Expensive to Get Started One of the biggest advantages of SFR…
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Financing Options for First-Time Multifamily Property Investors

Financing Options for First-Time Multifamily Property Investors

There's no question that investing in multifamily real estate can create a steady cash flow. In fact, the potential to earn more income and to increase your net worth can be greater with multifamily properties than with single-family homes—as long as you complete your due diligence. Teaming with the right lender can help get you through the process. But before you start, it's helpful to understand the financing options available to multifamily property investors. That way, when the time comes, you can pick the best loan for your needs. Fannie Mae and Freddie Mac Loans Fannie Mae and Freddie Mac…
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Why You Should Buy an Apartment Complex

Why You Should Buy an Apartment Complex

Decide if Buying an Apartment Complex Is Right for You Before you start an apartment investing business, you want to make sure it’s the right investment strategy for you. Compared to purchasing single-family homes and small multifamily properties, an apartment building requires more research, more time, and oftentimes more capital and additional expenses. It’s important to weigh the pros and cons before buying apartment complexes. Pros of Buying Apartment Complexes There are many benefits to apartment investing. These include recurring income, spreading income across many units, lower per-unit maintenance costs, and the potential for extra income beyond collected rents. Lenders…
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What Is a Good Debt-to-Equity Ratio?

What Is a Good Debt-to-Equity Ratio?

A debt-to-equity ratio is one of the metrics you can use to evaluate a company’s health—specifically, whether or not the company is standing on stable financial ground. What is a good debt-to-equity ratio? And how can you use the debt-to-equity ratio to guide your investment choices? What is A Debt-to-Equity Ratio? The debt-to-equity ratio (also known as the “D/E ratio”) is the measurement between a company’s total debt and total equity. In other words, the debt-to-equity ratio tells you how much debt a company uses to finance its operations. For instance, if a company has a debt-to-equity ratio of 1.5,…
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What are Mixed Use Properties?

What are Mixed Use Properties?

Mixed-use commercial property is either a building or a land development that includes both residential and commercial space. For example, a structure that has office space on the ground floor and apartment units on the top floor would be considered mixed-use residential or mixed-use office space. As is familiar with most mixed-use properties, the residential portion takes up more square footage than the commercial share. For tenants, mixed-use space is commonly referred to as a live-work space. Mixed-use commercial real estate has also become a central piece of urban development planning. Developers may combine residential, commercial, cultural, institutional, and even…
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Why A 30-Year Loan Is Better Than A 15-Year Loan On Rental Properties

Why A 30-Year Loan Is Better Than A 15-Year Loan On Rental Properties

15-year loans may appear to save money over 30-year loans because they have a lower interest rate, but you may want to have the flexibility of a 30-year loan.  Buying rental properties is a great investment, especially when you are able to use a mortgage to buy the properties and still get great cash flow. Many investors will get a 15-year mortgage because the rates are a little lower and they can pay off the properties quicker.  However, a 30-year loan when buying rental properties can offer more cash flow. Plus, the flexibility of having greater cashflow to buy more…
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