Each investor has their own strategy, and because of the high chances of success in real estate, each strategy can prove to be successful.
Investing in multi-family properties is one of the most common ways investors grow their portfolio and develop a thriving business.
However, even within the world of multi-family investments there are different strategies that an investor can have.
In most cases, the assumption is that a multi-family property is used for monthly rent cash-flow. This makes sense because a multi-family property is a great source of monthly cash-flow, especially in a strong rental market.
There are other strategies for multi-family investing other than rental income. One is the classic fix and flip. An older property can be renovated and sold for a profit. Considering the increased demand for luxury apartments and upscale apartment complexes, a renovated multi-unit property can attract many potential buyers.
Another strategy can be to buy as a whole and sell it for “parts.” This means that you can buy a multi-family property essentially turn the units into condominiums and sell individually for a profit. You can either sell all the units and completely give up ownership or can partially sell the units and still hold ownership of a part of the property.
Depending on the location a multi-family property can also be used as a vacation rental. Airbnb revolutionized the world of vacation rentals and hotel options. This can allow you to generate income from the property without having a long-term rental commitment.
Another option, depending on your personal situation is called “house hacking” which means you yourself live in one of the units, so it is considered your residential property, however, the income from the other units can cover all the expenses. This saves you money on your living expenses and it also helps with a reduction in capital gains taxes.
These are just a few tips on how great this type of investment can be. There is so much more that you can benefit from. Reach out to us at Amin Vali Real Estate Investment to find out more.