Multi-family real estate investing: how to get started – Mortgage Professional

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It is easier to finance

While multi-family real estate investing may be more costly, it is also much easier to finance than single-family properties.

Depending on the type of property, a multi-family property can run into the millions for multi-unit complexes, especially for a good location. You also have to account for zone rules and vacancy rates, as well as costs for repairs and utilities.

Buy/sell, rent/lease residential &
commercials real estate properties.

Financing is, of course, another key consideration. If the multi-family property has five or more units, you have to get a commercial property loan.

The plus side, however, is that multi-family properties consistently generate solid cash flow. This is true even if some tenants are late on rent or there are a few vacancies. Look at it this way: if your 10-unit property has one vacancy, that means it is only 10% unoccupied. If, however, a tenant moves out of a single-family property, it is 100% unoccupied until rented again.

This all means that multi-family real estate is less risky for lenders. And for the property owner, it can result in more competitive interest rates.

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