Your first multi-family property is a critical move in your real estate investing career. You’re moving past wrong information and psychological barriers on into new territory to achieve your financial goals. Well, you made the right decision. Multi-family properties open a huge door of profits for the new and experienced investor to achieve their financial goals.
Believe: The first thing you have to do is believe that you can do it. If you don’t believe you can do it, your mind won’t allow you to do it. Take a moment, put all fears aside and envision in your mind what your world will look like when you do your “this.”
See yourself doing it, see yourself doing it successfully, and finally know you can do it.
Your First Building Block of Wealth
Multi-family homes are an easy way to get into investing for first time homebuyers and non-occupant buyers. There are loans for owner-occupant home buyers who want to purchase a multi-family home of up to four units which allows home owners the ability to borrow more because they can use the rental income for loan qualification purposes. They’ll also receive owner-occupant financing with little down and lower interest rates as compared to commercial property loans.
Significant Cash Flow Can Be Created
Your first multi-family property will outperform in profits what your single family investments can do. There’s no doubt that you can become wealthy with single family homes, but you’ll have to do multiple deals quickly just achieve the same amount of money. When you start getting those monthly checks in the mail, you’ll have a reminder of why multi-family investing is the way to go.
Lower Risk Involved
Multi-family properties provide a cushion of income for unexpected events. If you lost a tenant in a single family property, you’ve also lost all your income for that month. With multi-family properties, the mortgage expense can be covered with rents from other tenants and from your cash flow. If there are repairs or maintenance that needs to be done on the property, the cash flow you generate from the property can help to pay those expenses. In order to do that with a single family property, your cash flow needs to be really high to be able to offset the costs.
There’s Less Competition
Multifamily investing is still shrouded in myth and misunderstanding. For that very reason, there’s less competition which means more opportunities for you and I to profit! People in general avoid commercial property because they believe that it is too far out of their reach. They see the price tag.
They see the work involved and then they run back to working their plan of buying one house at a time. What they’re really missing is the opportunity to learn a new way to profit from real estate – a new system of buying right. Your first multi-family property will take you through the process of putting a tested and proven system to structure the deals the right way.
Start as Big or as Small as You Want
Commercial property is the path that will help you achieve your financial dreams and goals. I have been investing in apartments for over 10 years now and want to encourage you to look for deals that involve multi-unit housing. The idea here is to just start. You can start off with small properties and still see a remarkable cash flow as compared to single family properties.