Multi-Family Property: A Great Option in Property Investment
Buy a home. Fix it up. Then flip the house for a profit. These are the steps that many new investors are taking when getting involved with property investment. Everyone from the neighbor down the street to retired seniors are flipping houses to make a quick profit. Another investment option to consider is purchasing a multi-family property. Being a Tucson landlord and having a trusted property manager run the daily operations has some great advantages. Here are several reasons why becoming the landlord of a multi-family property is appealing and beneficial.
Better Property Investment Financing Options
Lenders love to minimize their risks when originating mortgage loans, and multi-family real estate is a safer investment for them. They generate higher cash flow from numerous tenants. Even when one renter leaves, you’ll still have other tenants in place to keep your cash coming in until the vacancy is filled. This means the mortgage loan will easily continue to be paid without interruption.
Rising Rental Rates for Arizona Properties
Rental rates have accelerated across the country. In 2019, they have increased by 3.1%. With such rapid rental growth, a landlord can lower incentives to renters while increasing prices for Tucson properties. Even with the price increase, a rental unit will still be more affordable to renters than buying a single-family home.
More Millennials Are Moving into Multi-Family Real Estate
Millennials remain the largest target market for rental properties. They are leaving college and searching for affordable housing that fits into limited budgets. Also, they are putting off having a family and instead are focusing on making a career. With a multi-family property in a great location, these renters are snapping up available rental apartments and units.
Professionals Can Manage Property Investment
Some investors are great at finding Arizona property opportunities, but they don’t have the management know-how. Other times, they may not even live in the state. Hiring a local property manager ensures that properties are well-maintained. A local Tucson property manager can handle all administrative and maintenance tasks for you, so you don’t have to worry. A property management company will also track the local real estate market and adjust rates, so you make the most profit.
Build a Larger Portfolio of Tucson Properties
It’s easier to grow a real estate portfolio when buying multi-family properties. An investor can find a 12-unit building while getting a single loan. Purchasing 12 single-family homes, and getting 12 separate mortgages, however, takes much more time and effort. Also, you’ll have to deal with each seller, perform inspections, and deal with the closing transactions separately.
Get Involved with Multi-Family Real Estate
Due to the growing demand for affordable rental units, investors are scrambling to purchase these types of properties. With more buyers on the market, an investor needs a capable real estate brokerage to find the ideal commercial property investment. In addition, many brokerages also offer property management services, which means an investor can work with a single company to build their commercial rental property portfolios.
Invest with Bancroft & Associates
Are you searching for a multi-family property for sale? Perhaps it’s time to hire an expert property manager to handle the daily work. Contact Bancroft & Associates! We’ve been in business for over 45 years, and we help investors all over the globe locate and manage their Tucson investment properties. Get in touch with us today for more information.