SHOULD YOU INVEST IN A MULTI-FAMILY PROPERTY? July 13, 2022 | Maintenance , Management , Inspection , Investment | real estate trends , business tips , commercial real estate tenants , apartment , multi-family property With all the ups and downs of our current economy, it may be difficult to decide on the smartest way to build an investment portfolio. Currently the housing market is in favor of the seller, and demand far surpasses supply. In fact, for every home on the market right now, there are at minimum five to twelve homebuyers. While today’s market may prove challenging to find a suitable multi-family property to accommodate your needs, it’s definitely an investment worth your time. Reasons to Invest in a Multi-Family Rental Property Multi-family properties are a great way to earn passive income. With the economy looming on a downturn, an investment like this makes it possible to develop multiple streams of income apart from your day job, which can be a huge advantage during times of economic hardship. Depending on how many units are available in your multipurpose property, it’s possible to kill two birds with one stone in terms of accumulating additional income opportunities for yourself. Multi-family homes provide home security. By becoming the owner and landlord of a multi-family property, you can optimize your savings by opting to live in a unit of the building while collecting rent/mortgage from the other inhabitants of the property. This way, you’re ensuring that you have a place to live while saving money on the cost of a separate rent or mortgage. In turn, the money saved can be spent on extra business expenses, to create a rainy day fund, or to help you gain financial independence from your regular 9-5 job. Multi-family estates are easier to manage than your standard side hustle. While being the owner of a multi-family housing unit comes with its fair share of responsibilities, it’s fairly low-maintenance as a form of passive income. Depending on how involved you’d like to be, you can choose to take on all of the maintenance and management duties yourself, or you can choose to outsource some of the recurring tasks. If you’re looking to be really hands-off (and it’s in your budget), you may consider hiring a property management company, which can take care of collecting payments and addressing any tenant concerns or maintenance requests—more on this below. Management of Your Multi-Family Household If you’re taking on the property management duties yourself, your main responsibility will include making repairs to your newly acquired estate. Repairs, however, don’t have to be a painstaking process. You won’t even need to worry about making all repairs on your own. In fact, outsourcing the labor can take away most of the headache. The most cost-effective route for doing so often to enroll in a home warranty company’s protection plan. This way, you can simply make requests for repairs and follow-up with the company to see when they can send out one of their repair technicians to your multi-family property. If you would like the chance to be owner of a multi-family estate, but don’t wish to manage the property yourself, there are other avenues available for property management. For a fee, you can hire a property management or real estate company to oversee your newly acquired rental. Many of these property management companies will not only collect rent from your tenants, but they will manage repair requests and find repair technicians to service any problems the property may have. However, to avoid having initial repair fees, there are a few characteristics of a multi-family space to take note of. A commercial property inspection is a great starting place to identify necessary repairs and potentially negotiate costs during the buying process. Things Keep in Mind About Multi-Family Properties When looking for a multi-family home suitable for rental purposes, it is important to look at a few key features of the home. For starters it’s best to look for properties with minimal repairs needing to be made to the foundation of the home, as these types of repairs can be very costly both up front and down the line. Another home component to be mindful of is the condition of the roof and any other past repairs made to the structure. Last but not least, you will want to make sure that there are no issues with sewer lines and the overall drainage system of your new commercial property. Call NPI Today for Your Commercial Inspection Needs At National Property Inspections, our inspectors are trained to assess and report on all of your commercial building’s major systems. Visit www.npicommercial.com to book your inspection today!