Nicoles First Realty

Real Estate Properties

Advantages Of Investing In Multi Unit Homes

Posted by on Sep 6, 2017

There are a number of advantages of investing in multi unit homes. Many successful real estate investors recommend beginners to invest in multiunit homes instead of investing in single family homes if they want to make money in real estate. Here is a list of some of the major advantages of multi unit homes.

Greater Cash Flow

One of the biggest advantages is that it gives you much greater cash flow as compared to single family homes. This is simply due to the fact that a lot more rent comes in through multiunit homes as compared to a single family home. Also, you are at much less risk as there are a number of tenants which is not the case with a single family home where you have a single tenant. If the tenant walks out of your single family home, you lose all of your income which is not the case with the multiunit homes.

multu unit homes

Economies of Scale

Another big advantage of multiunit buildings is that they offer you the economies of scale. If you have an apartment complex with six units, you will need to replace only one roof and all of your tenants will be located in a single place. In other words, economies of scale work in your favor.

Less Competitive

Multiunit homes have a lot less competition as compared to single family houses. Another big advantage of investing in multiunit homes is that you can hire the services of competent property management companies for managing property in Cincinnati as well as the tenants whereas you do not have such leeway when you invest in a single family home. The property management company will take care of all of your problems, and you can just sit back and collect the rent.

Also, you will get much bigger payout when you finally decide to sell your multiunit home as compared to selling a single family home. Overall, these are some of the major advantages of multiunit investing if you are looking to invest money in real estate.