Boost Your Investment Portfolio with Multifamily Real Estate
August 5th, 2020
Those looking for an investment strategy that is both satisfying and lucrative often turn to real estate. Typically, they use leverage to buy a property, whereas the same cannot be said for those buying stocks and bonds. Return on investment can be enjoyed much sooner and for a more extended period than other choices. Finally, real estate tends to appreciate over the years, so what you buy today will be worth more later.
Taking your first step may be the hardest, especially if you don’t know what to look for or why to choose one option over another. Only work with multifamily brokerage firms in Mississippi that know what an excellent investment looks like and can assist you every step of the way. The team at The Estes Group understands both sides of the bartering table. We help both sellers and buyers to build a portfolio that meets their needs and financial goals.
5 Benefits of Choosing Multifamily Real Estate Investments
Real estate investing has many facets, including single-family homes, multifamily, and commercial properties. Deciding to buy multifamily doesn’t have to be perplexing if you understand the benefits, such as:
- Higher Cash Flow: With high demand multifamily properties, the vacancy rate is much lower. Thus, your monthly revenue is higher than a single-family rental property. Consider if you purchased a quadruplex and planned on living in one unit while renting out the other three. Effectively, your tenants could cover the cost of your mortgage through their rent payments. Work with experienced multifamily brokerage firms in Mississippi to maximize your real estate investments.
- Easier to Finance: Purchasing an apartment building is expensive, and costlier to buy than other options. However, a bank is much more likely to approve a mortgage for a multifamily property because it generates steady cash flow each month. So, even when vacancies do occur, they are not as loss generating for the landlord.
- Less Time to Increase Your Portfolio: Purchasing one building with twenty units takes less time than buying twenty different houses. In other words, one transaction produces a quicker increase than conducting twenty separate transactions. If you want an extensive portfolio of rentals, then multifamily real estate brokers can guide you and get you where you want to be much faster.
- Cost-Effective to Manage: Hiring a property manager to handle the day-to-day operations makes more sense when you have several units, leaving you with fewer headaches. You have more flexibility to pay a percentage of your monthly income for property management than if you only owned one or two single-family homes.
- Lower Investment Risk: While they cost more to finance initially, multifamily buildings have less cash flow risk. Picture owning 100 units and having ten families move out. That is only a 10% vacancy rate. Now imagine owning one single-family home and your tenant leaves. That is a 100% vacancy rate. Multifamily brokerage firms in Mississippi can help you minimize loss of rental income on your real estate investments.
Choose Mississippi’s Preferred Multifamily Real Estate Brokers
The Estes Group has worked hard to establish a track record of success and earn a spot among the preferred commercial multifamily brokerage firms in Mississippi. Our team helps you maximize value by building a sound strategy around your goals. Look to us for assistance with investments and acquisitions, property and asset management, development, and brokerage and transaction services. Talk with us about your real estate investment goals and needs.
Call us at 601-362-9633 or contact us online to discuss your real estate goals with our dedicated multifamily real estate brokers. Licensed in Alabama, Louisiana, Mississippi & Tennessee.