If you are concerned about the stock market’s volatility, you may consider a safer real estate investment. Although this strategy requires that you take on a more active role, you should have greater control over your assets and income. However, there are several investment strategies you could choose from. These are the benefits of investing in multi-family real estate.

Property Management is More Economical

If you are like most investors, you want income without the hassle of managing your properties. Many investors eventually hire property managers. These individuals handle tenant advertisement, screening, and issues, as well as rent collection, evictions, and property maintenance, but they typically charge a percentage of the rental income each month.

However, this can be an expensive contract if you own single-family home rentals. Multi-unit properties make this expenditure more economical. You will pay the company to manage the entire property, which makes significantly more than a residential rental. Although you are paying more for your property management, you are earning significantly more.

Financing Is Easier

Multi-family properties are significantly more expensive than single-family homes. You may pay millions more than if you purchased residential property. However, multi-unit real estate is much more likely to receive financing through bank loans or investor contributions. Part of the reason for this trend is that your property generates multiple income streams through multiple tenants. Therefore, if you have vacancies, you should still be making money every month, whereas if your residential real estate tenant leaves, you have no income.

Also, foreclosures on multi-unit properties are significantly lower than those on single-family homes and rentals. Therefore, you and your banker have much less risk on a multi-family real estate purchase.

Growth Occurs Faster

While some investors only want a few properties to add to their investment portfolio, others want to build a large portfolio of rental properties. If your goal is to increase your real estate investment portfolio quickly and significantly, there is no better way than investing in multi-unit properties.

It is much easier to purchase an apartment building that houses 15 units than to purchase 15 individual residential properties. You only deal with one seller, have one inspection, and one loan or group of investors to work with. Not only is this more efficient, but your income is significantly higher right away.

If you have decided that investing in properties is the way you hope to make a regular income and build your asset portfolio, consider the benefits of owning multi-family real estate.