Through no fault of their own, new investors hear the words multifamily property investing and instantly create a stigma; they are immediately convinced that their experience, or absence thereof, would keep them from getting involved in the multifamily industry. After all, its very name suggests a degree of technicality that only experienced investors could try, but I digress. Multifamily property investing isn’t any more difficult than the most basic property investment. In fact, I’d assert that multifamily property investing is maybe the very best way for new investors to start in the industry.

Let’s Look at a Few of the most important reasons new investors should think about buying multifamily properties:

• Gives people the capacity to reside in one unit whilst renting out the rest.
• Tenants will help investors pay down their mortgage.
• Reduced upkeep expenses.
• With numerous tenants, investors are able to mitigate leasing risks.

Multifamily properties have a tendency to come with greater financing options than single-family houses because they are considered more risk-averse.

For starters, multifamily real estate investing awards savvy entrepreneurs the capability to simultaneously live in one unit whilst renting out the remainder. Should you invest in a two-unit construction, as an instance, there’s no reason you can’t reside in one half of the property whilst renting the other. In the right market, the money that you accumulate in rent could offset the amount you spend on the mortgage and then some. 

Besides getting your renters to pay down the mortgage, multifamily real estate investment equates with much less maintenance than that your typical single-family leasing unit. Even though you may have multiple units, chances are you simply have to worry about one roof, one HVAC unit, 1 yard and a single foundation. Multifamily property investors do not have to run the gambit of mending over several big-ticket items; you don’t have to worry about fixing more than one roof, yet you are collecting many rents. And while there are exceptions, done properly, you can significantly decrease the total amount of maintenance to expect on a property.

For those investors with large dreams, which I trust is everyone reading this, multifamily homes are also a great way to scale your own rental portfolio. If for nothing else, it is a whole lot simpler to acquire a six-unit apartment building than six individual single-family homes. Buying six different properties means six unique closings; that indicates you’re signing six unique contracts, shutting six unique escrows and working with six unique sellers. However much experience you have, something like that will take some time. A multifamily property, on the flip side, could give you as many resources with just investing a sixth of time in this particular scenario.

Maybe even more importantly, acquiring six units through a multifamily property will most likely require one loan. In buying six single-family homes, you’ll probably need multiple financing options. In the amount of time it might require you to just receive approval from only 1 creditor, you might potentially have a multifamily unit under contract and ready to move on.