Why Now is A Great Time for Multi-Family Real Estate

There has been a tremendous amount of recent focus on the housing crunch, and the impact it has had on our economy as a whole. While many indicators point to signs of recovery in our economy, ask someone who has lost a job if they think the stock market is a good indicator of economic health. You get the idea. Talking heads may preach what they will, but the average consumer sees the reality right in front of them as the proof in the proverbial pudding.

When consumers experience life changes that require them to move, they have a number of options for where to go next. The options available to consumers who need a place to live include:

A new single family home/condo that they purchase
A new single family home that they rent
A multi-family apartment unit that they rent

You should be able to see that being an owner of multi-family real estate makes you a source of housing, at a time when many people desperately need it. Multi-family apartment owners are able to provide a valuable service to consumers who need a place to live, in addition to being able to pursue a solid and proven medium for investment.

Why is the investment in multi-family homes so attractive right now? In addition to the economic conditions out there being good for it, I think there are some more basic real estate investment principles that also steer you in this direction.

First, you have limited issues with respect to vacancies. Single-family homes, as rental investments, have investors concerned right now, because a vacancy means zero income. With multi-family real estate, a single vacancy is something you need to address but it also doesn’t wipe out your entire income stream. You have a buffer, in times when you most need it with your investments.

Second, the market for real estate has made pricing for multi-family dwellings much more attractive. There is a greater overall volume of inventory out there and that means you have a much better opportunity to evaluate more properties and search for that truly great deal that will leave you in a solid cash flow position, once you acquire the property.

The bottom line here is that, the sooner you see the present economy as a source of opportunity, the better your portfolio will become and the sooner it will happen. Multi-family real estate represents one of the most logical and lucrative investments to consider and, especially in the current economy, it couldn’t be a better time to get started.