What to Look for When Investing in Multifamily Real Estate

Are you planning on investing in multifamily Real Estate for the first time and don’t exactly know what you should be looking for when it comes to investing in your first property?

In this article, we will share with you several tips that you can use for acquiring your first multifamily rental property to add to your Real Estate investment portfolio.

Tip #1 – Where Is It Located?

The first step towards finding the right multifamily rental property is analyzing the location because that old saying of “location, location, location” when buying or selling a single-family home is also true when it comes to investing in multifamily Real Estate.

Ideally, you should be investing in a multifamily property that’s in town, or within one hour of a major town, near shops/stores, close to schools or a major university, and within a short drive of major recreation options.

As an investor, you should also be searching for properties that are in high yield, high growth, well-maintained areas that are in demand or are rumored to be the future location for development by large corporations like Amazon.com.

Tip #2 – What Is the Total Number of Rental Units?

Once you find a great multifamily rental property the next step is to analyze the total number of rental units and the total number of rooms in each unit because this will also add to the desirability of the building itself and aid in keeping those units rented on a long-term basis.

More often than not you will find that most tenants are looking for 3-bedroom, 2 bath units so if you find a multifamily property that matches this criterion, and the building is in a great location, you may want to move forward with investing in that property.

Let’s say that you’re wanting to start small; in this case, you should consider investing in a multifamily rental property that’s either a duplex, triplex, or four-plex because these units are fairly easy for anyone to manage on their own while they are just getting started with owning multifamily rental properties.

Tip #3 – Verify the Potential Income

So, you’ve found a great multifamily rental property in a nice area that you’re excited about purchasing. Before moving forward with buying that property you should verify the potential income.

This tip is vital because even though the property may look great on the surface it could be in an area that’s not close to anything desirable and the building may have more vacancies than you know.

To verify the potential income, you should drive by other multifamily rentals in the area, speak with local property managers about what other buildings are renting for, and use the Internet to verify rents and prices of those buildings.

Tip #4 – Review the Costs

When buying a multifamily rental property, it’s also important for you to keep the costs in mind because financing the building may be different for you (depending on your credit score and finances) than it would be to finance a single-family residence.

Even though the financing side will be different, keep in mind that you may be able to qualify for owner-occupied financing if you decide to live in one rental while renting the other units out.

Tip #5 – Learn More About the Seller

Another important thing to do when buying a multifamily rental property is to learn more about the seller and their motivation for selling the property.

The property may be priced low but there could also be a story behind why the owner is selling for that price so don’t hesitate to ask questions before moving forward with buying a multifamily rental.

Tip #6 – Get Your Financing in Order

During the process of buying a multifamily rental property, it’s important for you to remember that financing is the same as buying a single-family home. You will have to have money ready for a down payment, a good credit score, and you should also be able to qualify for a traditional mortgage or FHA financing if needed.

Besides getting your financing in the order it’s also best to have one or more people that you can turn to for a co-signer (if needed).

Get Property Management For Your Multifamily Rental Property

For professional property management for your multifamily rental property contact Vestpro Residential Services by calling us at Vestpro Residential Services by calling us at (832) 971-1841 or click here to connect with us online.

3 Reasons to Invest In Houston Texas Multi-Family Rental Property

Multi-Family Duplex

By Vestpro Residential Services

It’s April 2015 and now that we’ve made it through winter most people are recommending that you buy a rental property to add to your portfolio but what about Huston Texas Multi-Family Rental Property?

If you’ve never considered owning a multi-family rental property before here are 3 reasons why you should consider investing in one for 2015.

#1 – Multi-Family Rentals Are Always In Demand

After the recent economic crash the residential Real Estate market took a big hit across Houston Texas but the multi-family rental market remained stable.

One of the primary reasons why multi-family rentals continued to remain stable after the economic downturn is because many of those same people who once owned homes across Portland turned to apartments, townhomes and condos for rent.

Multi-family rentals are predicted to continue to stay in demand during 2015 and beyond as more renters especially Millennials and Baby Boomers are choosing to rent vs. buy property in Houston and across the united States.

#2 – Low Vacancy Rates

Another great aspect of owning Houston Texas Multi-Family Rental Property is that these properties tend to have low vacancy rates since some tenants will prefer to live in them for one year or longer.

This is good news for any property owner who wants to enjoy stable cash flow from their rental property.


 

#3 – A Profitable Investment

Last of all, but most important, when you own a multi-family rental property in Houston Texas you will also benefit from the fact that your rental will be a profitable long term investment for you since you will be collecting rent from more than just one unit and this means you will be able to pay off your rental quicker as well.

Houston Texas Multi-Family Rental Property

For more information about why a Houston Texas Multi-Family Rental Property is the right investment for you, or to speak with us about our property management services, contact Vestrpro Residential Services today by calling us at (832) 498-0016.