Perhaps you have dabbled in real estate investment with one or more single-family homes, you’ve reaped the financial benefits, and now you’re ready to take your real estate portfolio to the next level with a multi-family property. Multi-family investment properties include everything from duplexes to small apartment complexes with up to 100 units. Instead of collecting rent from just one resident with a multi-family investment, you’re capturing revenue from dozens of individuals. The financial benefits multiply with each additional unit, as do the property management requirements and costs. This article will walk you through the pros and cons of considering a multi-family investment property.
Pro: More Units Equals More Revenue
Why is owning a duplex twice as lucrative as owning a single-family home? Because it produces 2x the revenue. The same logic applies to multi-family properties with 12-60 or 60-100 units. Each unit offers another revenue stream opportunity to the owner. A small apartment complex with 24 units provides 24x the revenue potential of a single-family home.
Con: More Units Equals More Administrative Burdens
Likewise, for each additional unit and source of revenue, there are additional administrative burdens and property management responsibilities. That same small apartment complex with 24 units requires managing 24 leases and caring for exterior and interior property maintenance. Evernest makes it simple for real estate investors to capture the financial benefits of owning multi-family properties while streamlining and reducing costs for operations and management. From the outset, Evernest will manage your residents, leases, and property maintenance.
Pro: Leverage Value-Add Opportunities for Increased Financial Gains
Looking to get even more from your multi-family property investment? Purchasing a distressed multi-family property allows investors to pursue value-add opportunities for additional financial gain while contributing positively to the local community. For example, an investor acquires a 32-unit multi-family property for $2 million dollars, replaces all of the cabinets, as each of the units professionally repainted, then sells the entire complex for $3 million to another investor. This simple fix and flip reaped $1 million in gains for this real estate investor.
Con: More Risk and Exposure
Naturally, bigger investments inherently possess more risk and exposure than smaller, single-family property investments. Owners must consider how common areas will be cleaned and maintained and who will actively manage residents moving in and out of units. All of this can feel even more cumbersome if you, the investor, are not in the market. Evernest has offices nationwide, with boots-on-the-ground experts in each market we serve. Working with Evernest for your multi-family property management services will reduce your operating expenses and improve your residents' quality of customer service and maintenance response.
Pro: Evernest Automation Reduces Operating Costs
Trust your Evernest with your multi-family property management needs to minimize your maintenance and operational costs. At Evernest, we pride ourselves on only doing what we’re best at, including streamlining and automating property management services for high net-worth real estate investors. Receive weekly or monthly reports on your investment's financial performance without worrying about who is resigning their lease in unit 13B or who will be emptying the trash cans in the communal hallways. Evernest is your partner in strategic real estate investing across the United States.Contact our team to learn more about our multi-family property management services or connect with a local broker to explore multi-family investment opportunities.
