The easiest and most reliable form is business these days is an investment in property. If you have extra cash lying about, or you want a good investment opportunity to save, accumulate and increase your cash amount than the best investment will be in multi-family property.
What Is Multifamily Property?
When you hear the word investment, then you have two options: single family unit or multi-family unit. Many of you think that investing in a single-family unit is better as it is easier to manage everything, but what you do not realize is that a multi-family unit is more easy to manage as compared to a single family unit and many advantages.
Advantages of Multifamily Property Investment
1. More Cash Flow
When you are investing in a single-family unit than you have just one tenant who pays you rent and if that tenant leaves for some reason then you will have a vacancy risk, your cash flow will stop and you will have to search for a new tenant soon. In case of a multifamily unit, you will have more tenants who will be paying rent, there will be less vacancy risk and you will not be worried if one tenant leaves, as your cash flow will not be stopped.
2. Easier To Manage
You may feel that more families are hard to manage, but you are wrong. If you have to manage 4 single unit of houses and 4 families living in a multi-family unit, then which is better? Obviously, the multi-family unit. If you have to manage 4 single units, then you will have to employ property manager to each, look all the problems in 4 different places, whereas in a multifamily unit, it is all under one roof, so it is easier to manage. Yes, there will be 4 sets of electrical appliances and other stuff but you will not have to go anywhere.
3. Increased Profit
The cost of building a multi-family unit is more than a single unit, but not much. All you can do add 2 to 3 more units in your existing single unit, so you will not have to go through the hassle of constructing a multi-family unit from scratch.
Also, in different single units, you have the cost of employing a separate property manager for different single units as you cannot manage all, whereas, for a multi-family unit, you will just need one property manager, which will increase your profits. Also, there will be fewer taxes, you will be paying more taxes for 4 single units that a multi-family unit with 4 families.
4. Added Value
A multi-family unit is more profitable in the future. If people are looking for investment opportunities and your unit is working well, then they will proceed towards you. Also, you can do some renovations and increase the curb appeal of your multi-family unit so that more tenant can be attracted. When more tenants are attracted then the value of your property will increase. You cannot do the same for a single unit as the value will not be affected as much as for a multifamily unit.