Ron Cadman: Reasons & Tips to Invest in Multifamily

There’s a sense of pride that comes with owning homes you can rent out and generate cash flow from. But don’t limit yourself to single-family homes. Multifamily properties might seem intimidating to you at the outset, but the reality is that they offer so many benefits that they’re worth diving into, according to real estate expert Ron Cadman. Here’s a peek at a few reasons to invest in multifamily properties, as well as a few tips for doing it effectively.

First, renting continues to be extremely popular, so the more renters you can serve at one time through your multifamily property, the better for you. Specifically, an increasing number of millennials are saying goodbye to their parents’ homes and are looking for their own homes to rent. With apartment building vacancies being limited, owning a multifamily property couldn’t be a wiser move today.

So, how can you make sure that you choose the right multifamily property? First, select an experienced real estate broker who can lead you through the deal. Also, be sure to request detailed expense and income statements for previous years and the current year. This information should be in alignment with your expectation regarding the property’s current operations.

Note that there aren’t as many multifamily properties as there are single-family homes. For this reason, you might need to sacrifice on property condition or location to find a multifamily property in your target price range. In addition, before you purchase this type of property, verify that it is zoned not only for renting out homes but also for the quantity of units you plan to rent out there.

You’ll also want to have plenty of cash reserves on hand for those emergency situations that may crop up. For instance, you may have to renovate one of the property’s units, or you might have a tenant who fails to pay on time. As long as you prepare yourself adequately to own a multifamily property, you can rest assured that it will become one of the best investments you ever make.

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