For many real estate investors, the question of whether to purchase single-family or multi-unit properties can be daunting. For example, on the one hand, the value of single-family homes can oftentimes rise faster than their multi-unit counterparts. On the other hand, though, a multi-family property can allow you to truly leverage the income potential.
There are some other factors to consider, too, when making the determination about whether or not to move forward on multi-unit property. For instance, in many cases, even though this type of property is usually larger – and more expensive – than going for a single-family home, multi-unit properties can actually be easier to acquire. In this case, you can essentially end up with two, four (or more) units all in one single transaction, as versus having to deal with multiple sellers.
The purchase of multi-unit property can also be easier to finance, because these properties will often generate consistent cash flow. Here, for example, even if one of the units is vacant, the others are likely to be bringing in income each and every month – and because of that, multi-unit property can be much less risky for banks and lenders to loan money on.
While owning multi-unit properties can mean that you will have numerous tenants all in one small area (which can in turn equate to more time spent collecting rent and maintaining the units), it doesn’t necessarily have to mean that the time spent doing these tasks is yours.
Rather, by working with a property manager, you can delegate these time-consuming duties to someone else, while at the same time still profiting from your real estate investments. So, if you own rental units in Orlando and / or the surrounding area, give us a call today for more information on how you can leverage your time, and your income potential, with multi-unit properties.