October 24, 2023
People will always and forever need a place to call home; whether it is for the short term or to plant roots in the long term, housing will forever be a necessity. The need for housing for people across the country means fantastic opportunities to invest and acquire real estate properties. With so many different options available in terms of residential properties, there are items everyone should consider before signing on the dotted line. As Florida’s top multifamily real estate investment brokerage, The Multifamily Firm has compiled a list of our top tips to help you evaluate a potential multifamily real estate property, getting you the highest ROI possible.
How To Maximize The Potential ROI On Your Multifamily Investment Property:
Stay Up To Date On The Current Multifamily Market
The first and one of the most important steps is to conduct proper market research on the multifamily sector of the area you are looking to buy into. This research is so important because you will want to be very knowledgeable on the current state of the housing market so you are aware of what you are investing in and your potential ROI. You can seek information from other investors or experts who are knowledgeable in the market and are seasoned vets. These conversations will help you learn more about the real estate market in your particular area of interest and what you will need to do to invest in a multifamily investment property.
Determine Potential Repair Costs
When looking at multifamily properties, it will be essential to comprehend whether the property you’re interested in is ready to go or needs extensive or slight repairs before rentals can move in. This question is vital to consider before putting money into a property to determine if putting money into it will help get money out of it. If the property needs repair, you will need to determine the timeline, cost, whether it is worth it, and the outcome. If these costs are very high and outside your budget, keep searching; there is no need to rush into a property that is not right for you.
Figure Out Long-term Expenses
Whether or not your potential property needs repairs or updates is essential, but another factor is the responsibility for future expenses that may arise with the property. This cost includes property tax, mechanical fees, plumbing, eclectic, vacant areas, etc. Property taxes vary per neighborhood and location, so it is best to research that before touring the property. If your estimated long-term expenses outweigh the potential profits of the multifamily property, then it’s best to keep looking.
In Search Of A Multifamily Property? Contact The Multifamily Firm Today!
The Multifamily Firm is a premier investment real estate brokerage exclusively focused on the disposition & acquisition of multifamily properties. Based in Sarasota and Tampa, Florida, the firm is firmly positioned at the epicenter of economic growth and activity on the West Coast of Florida. If you are looking for a multifamily property, please feel free to contact us via our contact form or by calling us directly at 941-444-6160. We look forward to speaking with you soon!