With more condos and apartment buildings providing access to pools, outdoor barbecue and hangout areas, on-site dry cleaning, and fitness studios, it’s no wonder over one third of people in the US are flocking to rent out such a living space.
This is great news for real estate investors. Owning a property with more than one living space can help you scale your business and increase passive income. However, the way you fund your purchase, your knowledge of potential risks, and your understanding of the hottest markets can make or break your multifamily real estate investing journey.
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Multi-family properties house multiple families, couples, and/or sets of roommates. Each property has their own designated living area with a kitchen, bathroom(s), and other necessities. The most common multi-family properties are duplexes, triplexes, townhomes, and condos or apartment buildings.
Every investment comes with risks and rewards. The good news for those breaking into the world of multifamily investing is that they provide a numerous amount of benefits. Such benefits include the ease of obtaining financing, a larger cash flow, the potential to scale over time, and many more.
Multifamily investment properties pose a lower risk to lenders, making it easier to obtain the financing you need. If you were to invest in rental properties with only one tenant and then you lose that tenant, you (and your lender) could also lose a lot of money. Multi-family properties reduce this risk because you have multiple tenants.
With Revolution Realty Capital as your lending partner, you can secure a term rental loan for such a property with no personal income requirements and a 15% minimum down payment.