Investing in a multifamily construction property may seem like something that is out of your league but actually may not be as far-fetched as you think. With perseverance and careful planning, it is a great opportunity. With about 64% of the Boston population renting their living spaces over owning it outright, this is a great opportunity to invest in the beautiful city.
Here are 4 fantastic reasons to invest in multi-family real estate and why R.H. Blanchard Contract & Design is a great company to partner with for your construction needs.
Asset Versus Liability
The common thought is that a house is an amazing asset. In reality, a house is a liability. Sure, the backyard and the idea of calling yourself a homeowner is great, but what is that house doing for you? In order for something to be an asset, it needs to add value to you. An asset is meant to be a benefit, not a drawback.
Owning a house or several houses isn’t as beneficial as owning a multi-family apartment. When it comes time to sell the houses you had purchased, you would have to then deal with several agents, several potential buyers, several offers, and several inspections, all in different locations. In order to have those several houses you would also have to have many open loans on each property.
When you invest in a multi-family apartment, you have something that is producing revenue, even if there are a few vacancies. Instead of dealing with several different locations or offers, you have all of it in one location to manage and there is only one open loan.
Ease of Financing
Securing a loan for a single-family home may seem more favorable when you start looking at the costs of purchasing a multi-family property (which could be up in the millions), but the rewards that can be reaped with the multi-family property outweigh those of a single-family property. In fact, you are more likely to have that multi-family apartment loan approved over the single-family home. You are better off saving up for a down payment that apartment complex than you are saving it for a single home.
Millennials (and Many Others) Can’t Afford To Own Homes
What better market is there to target than those who aren’t currently interested in or able to buy their own homes? Many millennials and Americans in general who have purchased homes sometimes regret their decision. Most of them aren’t well prepared to handle the costs that come with owning a home and some end up either back at home with their parents or in an affordable multi-family property.
Another great opportunity is within the elderly community. Many of them are heading into retirement and are looking for affordable living. Having a multi-family complex that caters to the elderly as a retirement living location is also a great option.
Although you have the option to personally manage your investment on it’s day to day basis, it may not be ideal. Instead, you have the option to hire someone to be a property manager to handle that for you so you can focus on other things. The property manager would be mainly responsible for screening tenants, handling evictions, maintaining the grounds of the property, and collecting rent.
Owning a multi-family property is a great investment, especially in the booming and beautiful area of Boston, Massachusetts. When you are making your decision to invest in a multi-family complex, it is important to partner with someone who is reputable in the area and in that type of construction. R.H. Blanchard Contract & Design has served the city of Boston for decades and we are an Accredited Residential Manager with over 15 years of experience managing properties. If you are ready, please contact us to get started!