Make the Leap from Single-Family Investments to Multi-Family Investments


Make the Leap from Single-Family Investments to Multi-Family Investments

Investing in single-family housing can be appealing because of its straightforward simplicity of handling one renter and the straightforward math to evaluate. That being said there is one major problem: SCALABILITY!

If you are a serious investor looking to take your investing to the next level it is important to scale. Single-family houses can be hard to amass in scale and management can be a real struggle, making you less efficient. Not to mention the higher risk of vacancies and lack of investment diversity. Multifamily investing can provide the following.

• Cash Flow. Multifamily properties often generate higher cash flow due to multiple income streams from different units.
• Economies of Scale. Operating costs per unit can decrease as you can manage several units within the same location, saving on maintenance, renovations, and property management fees.
• Financing Leverage. Lenders may consider the income potential of multifamily properties, which can sometimes make securing financing easier for large investments.
• Scalability. Investing in multifamily properties allows for quicker portfolio growth, as purchasing property adds multiple units to your portfolio.

When scaling with your investments it does not mean you have to jump to a 20-unit building. Real estate investing is a long-term game. There are countless examples of investors starting with two units, then four, then eight, and more. The cash flow and wealth generation start to snowball, and you have a robust portfolio before you know it.

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