Although many individuals invest in rental properties after they have built up a large portfolio, anyone who is looking to be a property owner can take on this investment opportunity. With a single-family home, the only thing that you can do is rent out individual rooms to vacationers. However, by buying a multi-family property, it becomes possible to live in the place and still rent to a multitude of tenants. When deciding between a single-family and multifamily property, the ladder is the most cost-efficient choice.
Improvements Can Benefit All Units
If you were to buy two single-family homes, you would have to make improvements to the outside of both of them to enjoy a rental increase on both properties. However, a multi-family property allows you to invest in individual upgrades to the property and enjoy a rent increase on every unit you have. While the size of the property may be somewhat larger than what you would normally find with a single-family home, the small increase in costs due to size will be severely overshadowed by the other financial benefits.
Some projects that you can undertake on the cheap side can make a noticeable difference, such as painting your home in a bold color, planting a tree, or putting in a few flower boxes.
Less Aspects to Maintain
Only having to mow one lawn, pay one property tax bill, and handle bills for a single piece of land, you have much fewer aspects to maintain, which can lead to better time use and improved profits. It is important to value your time when it comes to rental homes as it could become a rather poor investment when you do not pay attention to the time and end up working full-time hours unintentionally. Some things that you can expect to do less of include painting, landscaping, and paving, which all play an important role in curb appeal, which is what you want to have to attract the most people to your rental.
Save on Property Management
Owning several properties in multiple areas is acceptable, but its main impact is it is costlier to travel from place-to-place, as well as taking more time to look at each one. When a property manager can drive to a single location and check on multiple tenants, they are optimizing their time, which in turn is making them more money as it allows them to take on more tasks.
Although it may be difficult to get your hands on a property loan with such an ambitious goal, you should keep on trying as getting such a property can drastically change your life in the investment world.
For further information on housing, contact local professionals, such as those from Woods Bros Realty.