Investing in real estate can be perplexing and mystifying for those who are first-time buyers. If you are thinking about purchasing investment property, one of the first things that you should do is to ask a professional real estate attorney about the benefits of buying a small multifamily property. Read on to learn about six good reasons why a residential multifamily building may be an excellent investment option for you:
The Sellers Are Often Flexible on Financing
Owners of smaller complexes are often more amenable to flexible financing options than those who own large apartment buildings, since they have more say in creative financing than those who have to answer to a group of other investors.
You Will Have Less Competition
Investment firms generally are only interested in purchasing large apartment buildings, meaning that you will have significantly less market competition for properties that interest you. Your main competition for these buildings will be other individual investors.
They're Plentiful in Most Communities
Most towns, cities, and even rural areas have plenty of these types of properties on the market, enabling you to pick and choose neighborhoods to suit your individual needs and preferences.
You'll Be Able to Occupy One of the Units
Purchasing a small multifamily complex will provide you and your family with a place to live where you can keep a good eye on your investment. You'll save money by not using the services of a property management company. You'll also save yourself the expense of maintaining another residence.
You'll Get Practice Being a Landlord
If significant real estate investment is a part of your planned financial future, owning and managing a small multifamily property will provide you with invaluable real estate management experience. If you are simply considering a future in real estate investing, owning and managing a small complex will give you a good way to test the waters before you take on a bigger project.
Purchasing Transactions are Faster and Easier
There's much less red tape involved with buying a single multifamily property than with purchasing a larger complex, and they can usually be closed on much more quickly than their larger counterparts. Nonetheless, you should engage the services of a skillful real estate attorney to help you navigate the purchase.
Buying investment real estate can be an exciting and rewarding experience that pays off well into the future if you've got a good lawyer looking out for your best interests.