In the past years, different institutional investors have fully taken up the single-family rentals that upcoming investors could focus on. Instead of competing with the large investment companies for commercial real estate in Vancouver, why not embrace multifamily investments?
Most investors avoid multifamily investments in fear of their high maintenance and affordability. However, that is a big misconception. There are many reasons such an investment is worthwhile. Understanding your audience, willingness to be creative, and seeking the assistance of a real estate agent is all you need.
A multifamily investment is a powerful investment strategy for creating consistent cash flow every month. The cash flow here is incomparable to that of a single family investment. Income risks are less in such a setting. Losing one tenant in a single-family investment accounts for a 100% income loss. Even during high turnover seasons, a multiunit will rarely stay vacant. Although the initial price tag in the real estate listings may be terrifying, you will no doubt smile all the way to the bank once you settle and get reliable occupants.
Adding a unique laundry facility to your property in the future, for example, could easily attract tenants and boost your cash flow. Also, maintaining the property will not only attract and retain tenants but investors too. Retaining tenants reads steady cash flow. What’s important is to maintain your property to retain its value over the long haul. Visit the Vancouver commercial real estate listings with the help of a professional, such as those from Vancouver Business Brokers, and make your decision based on the location, audience, and other significant details.
Economics of Scale
If you are looking for a property that will cater for the economics of scale, what you need is a multifamily unit. If, for instance, you have ten families under one roof, that means you will only have one roof to maintain and repair as opposed to 10 separate houses.
Multifamily units are located in a central point, and the economics of scale will always be in your favour. Since you will get high cash flows, you will have the capacity to hire a management company to manage your property. Having ten separate commercial houses spread across the country will mean a wider scope of management. In fact, you may need several managers.
With a multifamily unit, you only need one manager to handle tenant woes, collect rent, among other management concerns even if the units are more than 100.
Your First Investment Property Should Be…, Real Estate in your Twenties