Multifamily real estate can be a great investment. Many individuals, like Steven Taylor, have seen great success. Properties are typically easier to finance than single-family homes. They can start providing income right away due to monthly rents received from tenants. You can even live in one of the units if you want. Here are a few tips to help ensure that you get the most out of your investment.
Know What You’re Buying
Before you invest in a property, you should look it over thoroughly for any issues that require repairs. A building inspector can help to find issues that might not be immediately noticeable, allowing you to understand the exact condition of the property. You should also review the essential documents. Request expense and income reports, past utility bills, tax information, leases, and rent payments.
Make Sure You Have A Cushion
After your initial investment, you’ll have several ongoing expenses including insurance, repairs, and upkeep. While rent helps to cover these expenses, issues may come up. There may be numerous repairs in one year. You might have more vacancies than usual. Some tenants might not pay their rent on time. You should have an emergency cushion that can help to cover monthly costs if something goes wrong.
Determine Who Will Manage the Property
As Landlord, you can choose to manage the property yourself. If you choose to manage your property, you’re responsible for collecting rents and dealing with repair requests. If you would rather not be bothered by these responsibilities, you can choose to hire a property manager. You still own the property, but the manager takes care of the rent and the tenants for you.
When looking for a multifamily property, make sure that you have an experienced real estate agent who can help you to find a property that suits your needs. You may also want to consider a real estate attorney. When you take your time and do your homework, you’re more likely to have a successful investment.