Townhouse and Apartment Investment Properties

multi-family unit properties

What Is a Multi-family Unit or Property Investment

Photo: Apartments and Townhouses Designed and Build by one of our Builders – Metricon.

Multifamily properties, or apartment complexes, are buildings with more than one rentable unit. While there are fewer restrictions to build a portfolio of small homes, multifamily real estate investments have several advantages.

Benefits of Townhouse and Apartment Investment  Properties

  • Stable Income Stream

Rental property investments provide a regular and dependable income stream that produces positive cash flow that is higher than typical stock dividend yields. A property investment has an overall much greater ROI over time.

Always take into account the lifetime of your investment; in this department, this type of property will always be the safer investment.

  • Debt vs Income

The amount of the property’s net operating income (NOI) reduces the debt on the property.

The NOI is calculated by the gross income less all expenses before debt. It will sufficiently fund the debt payments, thus reducing the debt balance and creating equity.

  • High Appreciation Value

Multifamily rental properties provide excellent appreciation in value that meet and exceed other investment types. As such, apartment complexes increase in value as the net operating income of the property improves through rent increase and more effective management of the asset.

Remember, you should maintain your property so it retains its value over the long haul. The grounds must be kept, minor repairs performed in your ongoing maintenance plan, and a quality maintenance staff must be in place. Do your due diligence when selecting those who will work for you. You want to employ maintenance and grounds keepers who share your desire to provide clean, safe housing.

  • Lower costs to manage

Since the majority of the people who rent out townhouse and apartments are small families, the costs of property management can be lower on an annual basis.

You want tenants who can take care of the property. This can lower the number of repairs that are required with every lease renewal.

Here’s why a single residential home is a good investment for any conservative property investor

Demand 

More demand plus high occupancies is an easy formula for high rental income. 

More people prefer or can only afford to rent than buy, most of the time their preference is a single residential house..

Another thing to note is that vacancy rates have hit historic lows in recent years. This is important for you as an investor, increasing the likelihood that your tenants will remain in the property and not move out. Single residential homes generally have higher occupancy rates to begin with! So, as a result, even higher occupancies are expected for single family homes.

Cheaper Property Prices

Single residential homes tend to be cheaper than Dual Residential properties.

Even when important factors such as area, maintenance, and age are held constant, single residential homes are set at lower prices. The main reason this is the case is that single residential homes are simply smaller than some other properties.

The lower prices of single residential homes can serve as a great incentive for investors. Since this type of property is cheaper than other properties, they are often easier to purchase. 

Lower prices also mean that obtaining a bank loan becomes easier. This is great for all investors, but young investors in particular. By investing in single residential homes, younger investors find a great opportunity to get involved in property investing.

Value, Liquidity, Buyers

Even if you plan on not renting long-term and want to sell your property, investing in a single residential house is a great choice. For instance, they have great liquidity; they can sell relatively quickly, even in a slow market. 

As a result, more prospective buyers will be in the market, wanting to purchase the property. Single residential houses also have a high value. They appreciate faster than other types of properties. Whether you’re counting on rent or appreciation from your investment, single residential homes can do it all.

Key Takeaways

Again, this information is here to help you with your research. The type of property you invest will still depend on the type of property investor you are.

Here at Positive Income Properties – we source the right property deal based on what will work for our client. We are involved in every step of the way – (from sourcing to financing, and finally turn-over and renting the units!). Regardless if you are a seasoned property investor, a beginner or simply wanted your 1st home – we will assist you. We secure tenancy from the onset of the turn-over, please refer to our 1-3 Year Rental Guarantee HERE.

If you are still undecided or are locked in on a particular property or budget – subscribe to our FREE Resources and Property Deals when you click the button below.

Alternatively, if you are still doing your research, You may download our FREE “Where, How, & What Property to Invest In this 2021 – Your Ultimate Guide to Property Investing in Australia”, which we will launch soon! – (You may sign up ahead of time for the FREE Webinar and Resource.

Other FREE Resources to Financial Freedom and Retire Early HERE

Check out all our townhouse unit investment properties HERE.

Check out all our apartment unit investment properties HERE.

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