Want To Invest In Multifamily Housing?

 

Multifamily housing has always been a good investment. Investors have generally loved this sector.
Performance

In 2018, multifamily vacancy rates (for class B & C) have been below 6% while class A properties are about 9%. More and more investors are closing watching multifamily properties, particularly in B & C classes. These classes can maintain if there is a downturn in the markets. Unlike Commercial properties, Residential properties in these classes are generally recession proof.

Smaller Might Be Better

Class A properties are the most competitive among investors as well as attracting new tenants. But smaller is often times more profitable. I personally like quads and duplexes. We build quads on a regular basis but there are many duplexes, triplexes and fourplexes out there that are in need of repair. Great opportunities for value added investors.

Location

Depending on your experience and skills, it is best to invest in properties that are relatively close to your location. There are several reasons for this. First, you can keep a better eye on your investment, you have formed relationships with bankers, vendors, contractors etc. This is important to get good and fair pricing for services.

Out of state properties have a lot of additional risks involved. When you need repairs, unless you have a trusted vendor, you will more than likely pay a premium for any work done. In addition, you are not able to inspect the work once it has been completed. Whether you use software to manage these residential properties or you hire a property manager, things get more complicated when you invest out of your area.

Need a list? Here are some reasons remote workers outperform office workers:

Understanding the Neighborhood

Another issue with out of area investing is that you really don’t know the neighborhood. Understanding the neighborhood is important. Understand the demographics, characteristics and trying to understand where this neighborhood may be in the next few years takes more then looking it up on google earth. You should understand the city or county’s revitalization plans (if any), know where the up and coming neighborhoods are, any new businesses moving in or businesses planning to leave the area. This is information that is harder to come by if you are just looking at properties in areas you are not familiar with.

Government Assistance

Checkout the government’s new Opportunity Zone program. Governor’s in all states have designated 8700+ opportunity zones. These zones offer special tax benefits while providing investment opportunities for co-ownership with other investors.

These opportunity zones were part of the Tax Cuts and Jobs Act of 2017. The purpose is to encourage investors to invest in distressed neighborhoods throughout the country.

Investing in these zones may be something that will fit well into your portfolio.

About PropertyZar

PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Read more Top Property Management Blogs. Learn more www.PropertyZar.com

Comments

Post a Comment

Popular posts from this blog

These Advancements Are Bringing Real Estate Into The Modern Era

Image
  Many industries throughout the marketplace have changed their practices in response to developments in technology, but real estate, including property management is still largely stuck in the past. On-demand app development is making access to services easier than. Artificial intelligence and the Internet of Things are connecting us in new ways every day. It’s clear that taking advantage of these developments is key to progressing. As an industry with roughly $280 trillion in value , taking advantage of these new opportunities could produce billions or trillions in profits. A number of large real estate companies are attempting to build their own in-house technology, but in many cases, it would be more efficient for them as well as and property management companies to use existing solutions. These are some of the most exciting possibilities that new developments in technology can offer the real estate industry. Outsourcing the Cloud Cloud services is a rapidl...
Read more

How Propertyzar Compares To Appfolio, Buildium And Others

Image
Evaluating the right property management software can sometimes seem overwhelming. With so many options, how do you decide? The BIG Picture – It is important that you consider your business strategy when searching for a property management software. Whether you inherited a few rental properties, a real estate investor with multiple properties or a professional property manager looking to increase your portfolio of rental property owners. When you choose a software solution, there is time and effort involved for you to get “up and running” . You don’t want to change products because your business has out grown your current software solution. PropertyZar is not a “lite” application but instead is a feature rich solution for property managers and landlords. We are compared to products such as Appfolio, Yardi and Buildium. We do not compare to the smaller or freemium products. What does that mean? A common example is Accounting. While some vendors say they have a...
Read more

Online Property Management Software by PropertyZar

Image
PropertyZar’s cloud-based property management software enables property managers and owners to scale their real estate business. With PropertyZar’s robust application, property managers can market vacancies, run background screening, accept online applications, and maintain all their accounting records by owner and/or property. PropertyZar’s web-based property management software also reduces the amount of work that is required of property managers. Managers or Owners can configure PropertyZar to: Automatically enter late fees Automatically send out owner statements Auto syndicate properties Automated recurring invoices Appointment reminders Automated asset reminders (change filters, maintenance etc.) Automated work order requests Automatically email management fee reports Rent reminders are automatically sent to tenants PropertyZar also comes with PZ Tenant , our mobile app for tenants. Using PZ Tenant, tenants can pay their invoices on...
Read more