When it comes to investment real estate, one question is always at the forefront of the conversation: “Should I buy a single or multifamily home?” As specialists in multifamily investing in Kihei, HI, The Multifamily Mindset firmly believes in the superiority of multifamily real estate.
The Advantages of Multifamily Properties Investment Real estate
More Money in Your Pocket:
Imagine you have a piggy bank. Now, instead of having one piggy bank, you have many. Each one of them is putting coins in your pocket every month. That’s what it’s like to own a multifamily home. Even if one of your homes is empty (no tenant), others are still filled with people who are paying rent.
Cheaper to Look After:
Let’s say you have four dogs, but they all live in different houses. It would take a lot of time and gas to drive to each house to feed them, right? But what if they all lived in one big house? You’d only have to drive to one place. It’s the same with multifamily homes. Having all your rental units in one place makes it cheaper and easier to look after them.
Imagine you’re walking on a tightrope. If you only walk on one rope and it breaks, you fall. But if you have many ropes under your feet and one break, you won’t fall because the other ropes are still there to support you. It’s the same with multifamily homes. If you lose one tenant, others are still there to pay rent.
Faster to Grow Your Savings:
With a multifamily home, you can add more units to your rental business quicker. It’s like planting a whole garden of money trees instead of just one. Each tree (or unit) grows money (or income) for you. More trees mean more money.
Easier to Get Loans:
Banks like to lend money for things that make money. So, if you want to borrow money from the bank to buy a multifamily home, they might say yes quicker because they can see how you will pay them back with the rent money you’ll get from your tenants.
You Become More Experienced Faster:
With a multifamily home, you’ll learn how to be a great landlord quicker because you’ll have more tenants and situations to handle. It’s like learning to ride a bike with training wheels before you ride a big bike. You’ll make mistakes, but you’ll also learn a lot.
You Can Live in One of the Units:
If you buy a multifamily home, you can choose to live in one unit and rent out the others. That way, you’re not only making money, but you also have a place to live. It’s like having your cake and eating it too!
These are just a few reasons why buying a multifamily home can help you reach your goal of retiring early. So, if you’re considering becoming a landlord, consider starting with a multifamily home!
Is It Good to Own Multiple Properties?
Owning multiple properties can be a good way to spread risk. However, it also spreads your time and resources thin. That’s why many people turn to the multifamily investing model. It allows you to focus your efforts and resources in one place, making management more manageable and efficient.
How Much to Invest in Multifamily?
Deciding how much to invest in multifamily depends on your personal goals and financial situation. An experienced Multifamily Investing Company like The Multifamily Mindset can help you assess your situation and find the right property.
Remember, investing in multifamily real estate doesn’t have to mean investing in a huge apartment building. Smaller buildings with just a few units can be a great starting point.
How to invest in multifamily properties in a simple way:
- Savings: Just like how you save up your allowance to buy something big you want, you need to save money to invest in multifamily properties. This could be money from your job, a business, or other investments.
- Join a Team: Investing in multifamily properties can be like a group project at school. You don’t have to do it alone! You can join with other people who also want to invest. This team is sometimes called a real estate investment group. They can help you find good properties and manage them.
- Find a Good Property: This step is like going on a treasure hunt. You and your team look for a multifamily home that you can buy. You want one in a good neighborhood where people want to live, so you’ll always have tenants.
- Hire a Property Manager: Do you have chores at home, like cleaning your room or taking out the trash? Running a multifamily property also comes with chores, like fixing things that break and collecting rent. But you can hire a property manager to do these tasks. They’re like the captain of a ship. They make sure everything runs smoothly.
- Sit Back and Relax: Once you’ve done all these steps, you get to watch the money come in from the rent your tenants pay. This is the “passive” part of the investment. It’s like having a lemonade stand where you just sit back and watch people buy your lemonade.
- Reinvest Your Earnings: When you’ve saved up enough money from the rent you collected, you can buy another multifamily property and repeat the process. This is like leveling up in a video game.
So, should you consider buying multi family properties? Absolutely. Multifamily real estate offers stable income, lower risk, and economies of scale that single-family homes just can’t match. Whether you’re hoping to retire early or looking for a way to build wealth, multifamily investing may be the best option for you.
Take the first step on your journey with The Multifamily Mindset, your trusted multifamily investment real estate company in Kihei, HI. Contact us today to learn more about how we can help you achieve your financial goals.