June 6, 2023
No matter what industry you may be in, there will always be some form of misconceptions, especially regarding real estate. These misconceptions can potentially stop people from getting into investments, chasing their potential dreams, and going after their goals. In reality, the multifamily real estate investment market has been delivering strong returns to its investors for many years. To be specific, the multifamily investment asset class generates a higher annual average than any other form of real estate. That is why the industry professional team here at The Multifamily Firm has compiled our most heard misconceptions about multifamily investing and how we debunk them.
5 Multifamily Investment Misconceptions
I Need A Lot Of Experience
A common misconception is that you need to know everything and anything about multifamily real estate investing before you can get into it. However, the truth is you will never fully know everything about the process until you fully immerse yourself in it. This means attending seminars, learning from others, asking questions, and eventually taking action on a property. From these experiences, you will grow, learn and gain confidence.
I Need A Lot Of Money
While yes, you will need money for legal fees, closing costs, inspections, and other miscellaneous updates, you don’t necessarily need millions of dollars to make a good deal. You do not need tons of money to be successful, and you do not need to do it alone. Financing is a great option and is widely available, especially if other public or private investors notice that you are completing a good deal.
If My Property Is Vacant, My Profit Will Go Down
The best part of a multifamily property is that even if there are one or a few vacancies, you are still collecting some stream of income. If you were to invest in a single-family property and one tenant leaves, then your profit would go from 100% to 0%. That never happens with multifamily properties, creating a more stable income environment.
I Won’t Be Able To Maintain The Property
If you are a new investor, paying to maintain your property can seem daunting; however, the cost of maintenance and expenses for a multifamily property is significantly lower than for a single-family residence. Because with a multiple-unit property, any service expenses, landscaping, key lockouts, etc., is a fixed set cost for the entire building rather than unit by unit.
It’s Too Expensive
While yes, purchasing a multifamily property is a cost that will be higher than a single-family home. It depends greatly on the geographic location that you desire, as well as the overall size of the property. But with a multifamily property, you’re expanding your opportunity in return by allowing yourself to have multiple tenants at a time.
In Search Of A Multifamily Investment 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 strongly 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!