Day: June 11, 2018

Multi unit investing in real estate – a better strategy

Many times there is this question raised as to what is the way in which people can become wealthier by investing in the real estate industry. I have seen this trend that is developing among many people they are mostly interested in the purchase of single houses, but it is to be noted that it is always advisable that you purchase multi units in the initial level and then once you are the owner of a multi unit house you can go in for the single family house that could fetch you more money. It is profitable to go in for the multi unit apartments as there would be more advantages that can be reaped just for the fact that the maintenance of the building will be done with the money which has been pooled in from the joint resources of the other owners. Whereas on the other hand incase you are the owner of the singly family house then in that case you would be the sole person that would have to take care of the maintenance of the entire house. I was very much interested in the idea wherein the owner would be getting so much of money at the end of the month and it is to be noted that the money which is left over could be re-invested, saved or could be saved for the bad times in the future. You would particularly love the idea that the other management companies would come to your aid in such a way that they would solve and deal with your tenants and you will not have to deal with your tenants. These are some of the benefits that you would gain once you own the multi units:

-The first and the foremost benefit which you would get is that there would be more cash flow generated just because of the simple fact that the multi family houses provide you with more rentals than the single family houses. There are rentals which are almost double than the single family business. Further there is lesser risk incase you have a number of units under one single roof. Incase you have a single family house and if you lose a tenant then it is important to understand the fact that there is a loss of your entire income. Incase you have more number of units under one roof then there is lesser risk that you possess. So if you had three units and you have lost a tenant then there is not much of an impact on the owner as there are two segments of rent coming your way.

-Further you can get the benefit of economies of scale in multi units rather than the single units consider the fact that you require remodeling in your multi unit which can accommodate four families and on the other hand you have four single family units all of which require a repair.

Then in these two cases there would be more expense incurred on the single family house as you can reap the benefit of economies of scale in the multi unit house/


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