Whether you’re an old pro in the investing business or have just recently started to get your feet wet in the area, you may have mulled over multifamily real estate investing Hackensack NJ and wondered whether getting a multifamily property would be a good addition to your portfolio. If this is your first time venturing into the real estate sector, here are some interesting reasons behind why multifamily properties could present a particularly strong investment opportunity.
1. It Helps You Expand Your Portfolio Efficiently
One real estate strategy is to buy up multiple single-family homes one at a time and build up your portfolio that way. When you get a multifamily property, however, you can move through this process much quicker. A building that has a dozen units, for instance, adds more to your portfolio than any one house.
2. It May Be Easier To Pay For
Getting a loan for many commercial or residential properties can be a headache even for seasoned investors. Typical bank mortgages require thorough documentation, credit checks and high standards for businesses, including having been in business for a certain number of years or employing a certain number of employees. In this regard, multifamily properties like apartment buildings have an advantage in that they may be easier to secure a loan for, given the multiple units.
3. You Can Delegate Daily Duties
When you opt for a single-family home investment, it may not be worth it to work with a property management company. However, a larger multifamily investment could potentially give you the means to hire someone else to handle daily responsibilities, taking the burden off your shoulders.
Real estate investing can help diversify your portfolio and even give you additional rental income if you decide to lease out your property. Whether you’re searching for an extra property for your portfolio or are new to the business, multifamily properties present some unique advantages. Consider these key reasons when you’re debating what your next investment move should be.