If you’re a real estate investor, you enjoy working with your investments rather than letting someone else handle your finances. You don’t trust the stock market or have patience with its constant changes, so you purchase a mixture of commercial and residential buildings. Whether you’re new to the real estate industry or you’ve fixed and flipped countless properties, consider shifting your focus to multi-family real estate.

What Are Multi-Family Properties?

Multi-family buildings are usually called apartment buildings. They include multiple units and are rented by a variety of tenants. Apartments vary widely in size, so you can afford to invest in one even if you don’t have much startup capital.

What Are the Benefits?

You may think that it’s easier to invest in single-family homes, but apartments are becoming increasingly popular as people delay starting their families and receive smaller salaries than in the past. Don’t miss out on this real-estate trend; instead, invest in apartments.

Another benefit of apartment complexes is that it’s easier to create a big portfolio when investing in multi-family housing. When you purchase an apartment building with 30 units, your portfolio is automatically 30 units larger. On the other hand, purchasing 30 homes takes a lot more time and is much more expensive. Multi-family real estate decreases the amount of time you spend looking for properties, applying for loans, conducting inspections, and working with real estate agents.

Although apartments are more expensive than single-family homes, it’s easier to finance multi-family complexes. Even if your credit history is underdeveloped, banks are more likely to trust you with a loan because apartments are reliable sources of cash. It’s easier to find tenants for an apartment than a house because the commitment is smaller and the housing tends to be more accessible. Additionally, vacancies hurt your business less because your apartments are rarely empty even if all the units aren’t full. Because you have multiple tenants per property, you’re more likely to have the cash to keep up with your loan payments every month.

Every time you make an investment, you’re taking at least a small risk. A good way to minimize the chance of failure is to invest in multi-family real estate rather than single-family homes. With more tenants, a bigger portfolio, and more income, you have an easier time meeting your financial obligations. This success clears the way for you to invest in even more profitable properties in the future.