Invest in a Multifamily Property
Invest in a Multifamily Property – Yes. Many real estate investors choose to focus on single family properties, that’s what they’re most familiar with. They have owned and maintained homes themselves, and they feel comfortable managing rental houses. For that reason, many investors hesitate to take the step from single family homes to duplexes or apartment buildings. Multifamily buildings are more like commercial property and that can be intimidating.
However, Invest in a Multifamily Property have many advantages for property investors, and apartment buildings in Hagerstown, Maryland are no exception. Here are five reasons why you should invest in at least one multifamily property.
Apartments and Flats are in Demand
In Hagerstown, multifamily buildings allow singles and families to live centrally in well established, walkable neighborhoods with easy access to jobs, shops, parks, schools, churches and public transport. Demand for flats and apartments is high. They are especially popular with young people and empty-nesters. These days, more and more people appreciate the value of a smaller footprint, a managed property and a central location.
You Can’t Beat Multifamily Buildings for Cash Flow
Multifamily buildings are like many houses in one. The total rent from the units in a multifamily home or apartment building tends to be much higher than the mortgage payment, giving you a better return on investment than you’d typically earn with a portfolio of single family homes. Since you are receiving rent for more than one flat or apartment, you’re less likely to lose money if a unit is unoccupied. Just look at a few examples of multifamily buildings for sale in Hagerstown and work out the numbers. You will see the potential immediately.
Multifamily Buildings Have Economies of Scale
When you rent out single family homes, each one has to be maintained separately. Each house has its own roof, yard, garage and mechanical systems. An apartment building has multiple households under one roof, with one outdoor area, one parking area and integrated or semi-integrated electrical, plumbing and mechanical systems. One contractor can service the whole building, often with only one visit. There’s just one roof to maintain. When the parking lot has to be resurfaced, all your tenants benefit. This can save you both time and money.
Multifamily Buildings are Easy to Manage
It’s not just maintenance that’s easier when you own a multifamily building rather than several houses. With an apartment building, you will always have access to the exterior of the property and any public areas inside, usually including at least some of the electrical, plumbing and mechanical infrastructure. You will likely have onsite storage space. All of this makes it easier to manage a multifamily building if you’re doing it yourself. However, the healthy cash flow, multiple units and economies of scale make it more economical to hire a property management company, if you want. Hiring a management company is much more cost effective with multifamily buildings than it is with a portfolio of single family houses.
Multifamily Buildings are Energy Efficient
Some landlords include the cost of utilities in the rent, and others ask the tenants to pay. Either way, lower electrical and gas bills make a home less expensive to live in. Bigger buildings have a larger ratio of floor area to exterior area; the units share walls and in effect, insulate each other. Less exterior wall area and roof area per unit means less heat loss during the winter and less heat gain during the summer. That means, all things being equal, heating and air conditioning are going to be less expensive for an apartment, flat or townhouse than for a detached house.
There are a variety of attractive multifamily investment opportunities available in Hagerstown and the surrounding counties. These buildings will likely appreciate in value while providing excellent cash flow in the short term. If you’ve invested in single family homes in the past, then now may be the perfect time to add one or more multifamily buildings to your portfolio and find out for yourself why they make fantastic investments.
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