Multifamily

Residential multifamily is any property with 2-4 units. More than 4 units and this is considered commercial multifamily or an apartment. The larger the property the more expensive so residential multifamily is a great way to increase rental property returns without higher capital required. The more tenants you can put under a single roof, the better. Similar to traditional rental property investing, the goal is to purchase a property with the purpose of placing multiple tenants inside the property to pay for the mortgage payment, future capital improvements and profit. The more tenants the more income, but that means you have a greater probability of vacancy until the property is fully leased. One of the best ways to enter real estate and specifically multifamily with low capital requirements is purchase a multifamily property as a primary residence and take advantage of minimal down payment amount while using future rental income to increase qualification amounts. It’s best practice to understand market rents, and put together property management systems in place to complete repairs, collect rent, and track leases. Any time you rent it’s important to understand state and municipal statutes and regulations on renting visit the resources tab in the top right for more info.