Why Acquire a Multifamily Investment Property This Year and the Next
If there’s something I am enthusiastic about, it’s investing in a multifamily property. There are just so many opportunities on the table when you decide on acquiring apartment complexes for your portfolio. I can tell you this because multifamily is the world I have been living in for the past fourteen years.
Before I was able to close 26 multifamily syndications, I had been involved in the single-family sector. Though I enjoyed a certain level of prosperity in that market, I eventually decided to expand my portfolio. It came to a point when the multifamily market was surviving in the wake of the 2008 financial crisis.
At that time, investing in single-family homes posed too many risks and lower cash flows, so my partner and I took advantage of the situation by setting our eyes on acquiring a multifamily investment property. Still, like any first-time multifamily investor, we had our reservations. We weren’t really thinking about gaining a large cash flow from our very first property acquisition. Eventually, we were able to enjoy great returns, and since then, we stayed strong in this highly lucrative sector.
Even now, purchasing a multifamily investment property remains a highly attractive option for a lot of people, especially retirees who want to put their self-directed IRAs to good use.
If I haven’t convinced you yet, let me give you a rundown of the top reasons why you should invest in a multifamily property this year and the next.
1. Consistent income stream
Single-family homes usually have the risk of a complete vacancy. If a family decides on moving out of the property, you will be left with an empty house which you will have to lease to avoid incurring losses. You won’t be having the same problem with a multifamily investment property consisting of 12 or 50 or 200 units. When a single unit becomes vacant for a certain period, you still have other units that generate income for you, hence ensuring the consistency of your cash flow.
2. More emerging markets
The housing economy is still reeling from the effects of the 2008 crisis. One thing’s for sure, home values have picked up, and more people are not hesitant to invest in housing anymore. In fact, the right conditions for growth are already in cities that are considered as emerging markets. The fact that these cities are enjoying an increase in job growth, wage stability, and infrastructure development should be enough reason to focus on acquiring a multifamily investment property. With that being said, it’s important to do ample research and find emerging markets that promise greater cash flows.
3. Demand grows stronger
For 2018 and the succeeding years, the demand for multifamily homes will only grow stronger based on two important trends. First, millennials are moving out of their parents’ homes and settling down in duplexes and apartment complexes. Another reason for the increase in demand is due to “baby-boomers” wanting to sell their houses and retire in premier communities. These generations of homebuyers will no doubt impact market performance in the coming years. Investors will only need to leverage this climate of high demand before it dies down.
We are all at the right place and at the right time. We only need to take action, purchase a multifamily investment property, and begin building exponential wealth.
If you have any questions about starting out in the multifamily sector, you can contact me right now. I am willing to answer any questions you might have for me.