William schantz recommends considering all possible options before investing your hard-earned money to minimize risk. There are multiple strategies available when it comes to real estate investment. To build equity, you can go for single-family properties and complete your dream of a cozy home with a backyard.
However, multifamily real estate is an excellent option to ease your financial condition and earn off your investment. Today, William schantz will explain why multifamily real estate or a collection of rental properties is a popular and practical investment.
Multifamily Real Estate Explained – William schantz
There are properties with a single residential unit that can only house one family. These are called single-family properties. A single building with less than four residential units is also grouped as a single-family property. It is a general rule, and William schantz strongly suggests consulting your financier to confirm the financing terms for each property.
Properties with multiple rental units, such as apartment complexes, are called multifamily properties or real estate. These include small residential buildings as well as elaborate apartment communities. The most popular types of multifamily housing include
- Garden-style, which are 1-3 story buildings, mainly located in the suburbs.
- Walk-up buildings are 4-6 story buildings found in urban areas.
- Mid-rise apartments, which are 5-9 stories with an elevator.
- High-rise apartments, which are 9+ stories and have at least one elevator.
Other categories include housing societies and apartment communities. The two most popular sub-sectors of multifamily real estate are student housing and senior housing. These are special-purpose housing with amenities.
It is generally expected that a multifamily property would have amenities such as a play area, fitness centers, or recreation/ conference room.
Benefits of Multifamily Real Estate Investment by Bill Schantz
As per Bill Schantz, determine whether your multifamily real estate is residential or commercial before applying for financing. The investment required for acquiring multifamily buildings is exponentially higher than one-unit rentals. Still, it’s easier to find financing for multifamily property because they generate a higher cash flow every month. As an investor, you can secure your residence and generate a source of monthly income.
The threat of foreclosure on multifamily properties is also significantly less. As an investor, you can use this information to get a more competitive interest rate from your lender.
If you are already in the real estate business, buying a high-rise apartment and securing 20 odd units is more manageable than buying 20 single-family homes. It also adds to your rental property portfolio.
Bill Schantz’s market analysis has revealed that many retirees are selling their homes and renting out apartment complexes. One leading cause of the change in investment trends for retirees is the amenities and facilities provided on-site. As an investor, you can also engage a property manager to handle a multifamily property. Hiring a property manager takes away the burdens of documentation, screening, and payments off your shoulder.
The maintenance costs on multifamily properties yield much more profit or return on investment (ROI) than single-unit families. All of these factors combined make multifamily real estate worth considering.