Multi-Unit Housing

Investing in multifamily properties has been the road to financial freedom for many seasoned investors. Commonly comprised of properties with two or more units, such as duplexes and apartments, this type of investment seeks to maximize revenues by leveraging multiple tenants for multiple sources of income.
The Rock Investment Team

Here is our roadmap for investing in multifamily properties, finding and acquiring these types of opportunities:

What We Look For

For investors, investing in multi-housing units requires a reasonable amount of due diligence that will not only encompass locating a property below market value, but also commencing efforts to analyze and assess its financial sensibility.
Investing in multifamily properties requires a little more attention than other real estate deals; our team’s first concern is always based on the numbers. These financial figures will not only expose the true value of an investment property, but reveal its bottom line. In addition to the numbers, there is a selection of underlying factors that can, and will, influence multifamily investing.

It’s been said many times before, but location is of the utmost importance for real estate investors, and even more so when investing in multifamily properties. With more tenants, each and every unit will need to appeal to renters; location is generally the most desired criteria. When investing in multifamily properties, investors should pay attention to high-growth, high-yield areas where properties are in high demand, well-maintained neighborhoods.

The next step is to evaluate the property as a whole. Our team takes into consideration the amount of units on the property, including the number of rooms in each unit. We focus on three types of multifamily properties: the duplex (two units), triplex (three units), and four-plex (four units). These types of properties not only offer the most upside with the least amount of risk for beginner investors, but they are generally more affordable.

Than we determine the income of the property can accrutely. Sites like Rentometer.com or Craigslist are helpful sources for verifying rental prices and income, but our team practices due diligence, taking everything into consideration.

For those looking to remain conservative, the 50 percent rule is a general recommendation: 50 percent of a real estate investment’s income should be spent on expenses — not the mortgage. While too mild of a strategy for some, it’s a good rule of thumb for beginner investors.

There is one more question when evaluating potential multifamily properties is: who’s selling the place? Because the purchase price can vary greatly depending on the seller and their motivation, it’s imperative for investors to gain an understanding of who they’re dealing with. A bank-owned property is dealt with much differently than a for-sale-by-owner property, which means there’s potential for cost savings.

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Whether you are looking for an investment, or the property of your dreams, The Rock Investment Team offers it all.