In today’s uncertain economy, investors seek stability and safety. And while real estate is a historically sound investment through good times and bad, investing in single-family houses today can mean waiting for a market turnaround to make significant profits. Multi-family properties, on the other hand, regularly offer consistent income regardless of the unpredictable economy.
A multifamily property has multiple units available to rent and, thus, multiple sources of income stream to the investor. And contrary to popular belief, multiple-family properties make for less-risky investments than single-family homes.
That’s because multiple units to rent (compared to a single home with just one unit to rent) equals more opportunities to reduce vacancy. And a generally reliable cash flow from the occupied units makes it easier to pay down the mortgage. Not to mention the tax advantages of owning a multi-family property.
In addition, more millennials and Gen Z-ers are looking to rent rather than buy today, as housing prices put homeownership out of reach for them. This makes multi-family buildings desirable places to live for these populations and a sound investment for you.
Then there are the simple logistics. Buying one 15-unit apartment building means one loan with one bank, one inspection, and one seller. Buying 15 houses means 15 loans, 15 inspections, and 15 sellers. That makes the 15-unit building a much simpler purchase than 15 separate homes.
And because the profit margins are generally higher from multi-unit rentals than single-family homes, you can usually afford to hire a property manager to handle the day-to-day management and maintenance of the multi-family property. That’s less hassle for you over time.
And finally, buying a multi-family property is more affordable than most people think. Often, apartment buildings are owned by a group of buyers, with one partner navigating the purchase or build and then finding renters and handling maintenance.
An easy way to get involved in this kind of multi-family investing is to invest with a real estate investment group. These groups pre-vet real estate investment funds that build or purchase multi-family properties by aggregating the funds of a large volume of single investors.
Oasis Real Estate Investment Group, a leading mid-Atlantic-based real estate investment firm, offers its investors this opportunity. Oasis’ real estate experts choose the best real estate funds for optimum growth and then allows its investors to invest in these funds. This gives Oasis investors the chance to invest in large-scale multi-family real estate projects with investments in the tens of thousands of dollars rather than the millions a single investor would need. Oasis investors are then rewarded with higher than average returns on their investments.
Now, as the economy emerges from the pandemic and we adapt to a new normal, time will tell what the future of the housing market will look like. One thing is for certain, real estate, in particular, multi-family properties, will continue to be a sound investment.
If you would like to learn more about how you can begin to invest in real estate funds and start earning passive income, contact Oasis Realty Investment Group today.