Tips on How to Purchase a Multifamily Property
When it comes to real estate investing, it pays to understand the different types and how a specific type will increase your bottom line. At The Estes Group, we help our investors with all kinds of commercial real estate services, and we love to share our knowledge to aid our clients with their financial goals.
Choosing to purchase a multifamily property is no different. We utilize our knowledge about the current market, our contacts, and a proven process to ascertain a location that fits your requirements. Depends on us to keep the lines of communication open every step of the way, so you can rest easier knowing we are here for you.
6 Essentials to Remember When You Buy Multifamily Apartments
Investing in multifamily properties is an excellent way to increase your financial wealth. Whether this is your first or fifth location, you will find these tips useful to ensure you are getting an appreciating asset:
- Decide on your financial goals before you purchase a multifamily property. Decide what you want your investments to accomplish, what metrics you will use, what your cash flow is, cap rate, and the return on equity. Then choose what is most important to you: the potential appreciation or the current return. Once you know this, you can utilize the appropriate metric to decide on your next steps.
- Be mindful of the location. Where the property is located impacts the bottom line for your return on investment. Not only do you need to identify great deals, but you should also look for multifamily properties within a family-friendly community that is safe and near schools and hospitals.
- Understand the rental market in the area. This is vital to getting the most from your investment dollars. Discover what the average vacancy and rental rates are, by visiting the area, searching online, and reading any local newspaper classified ads. Make The Estes Group your first stop for market information and know you are getting what you want.
- Talk to existing tenants. One way to get a feel for the type of tenants and potential building issues with the property is to speak with renters when you are inspecting the location. It’s a good idea to avoid letting them know you are interested in buying, as some may think about moving out if they learn the property is up for sale.
- Look out for properties with deferred maintenance. Before you sign on the dotted line, request maintenance logs and ask about what has been done to the property to date. Also, check for any items that need fixing and which have been deferred. You may be responsible if they are not taken care of before you take ownership.
- Make sure that fire safety measures are in place. Since many families live in these properties, the risk of fire is more significant. Look for those places with existing alarms, sprinkler systems, and reliable fire escapes. Be sure everything is up to the local codes and subjected to regular inspections. You may receive a discount on your insurance, too.
Work with an Experienced Brokerage to Buy Multifamily Apartments
Don’t go it alone when you are ready to purchase a multifamily property. Instead, seek out the services of an experienced brokerage capable of finding the best locations at great deals. Talk to the dedicated brokers at The Estes Group. We have the expertise to aid you in reaching your investment goals.
Find out how our multifamily brokerage firm can help you purchase multifamily properties. Call us at 601-362-9633 or contact us online to discuss your real estate goals. We are licensed to operate in Mississippi, Alabama, Louisiana, and Tennessee.