Multi-family properties are the way to go for a fast return on your property investment. Housing shortages still affect Eugene as well as many other regions of the country. Multi-family properties help provide reliable housing for folks who aren’t ready to own and for those waiting for the right property to buy.
Your investment in quality multi-family housing is a powerful investment strategy that provides consistent cashflow every month. It also provides quality housing for your neighborhood.
Build Your Portfolio
It takes time to acquire multiple single-family homes. Purchasing multi-family property can at least double your leasing potential immediately. Guaranteed income from duplexes and larger units helps get you on your feet fast. It provides you with increased income and equity to invest in more units. Additionally, once you fill all units, you’ll earn consistent rent that allows you to pay mortgages and property insurance, as well as allowing you to re-invest in the property as needed.
The cost of property management for one multi-family unit is much less than if you were trying to manage multiple homes. If you outsource property management, the job looks more attractive if all the units they oversee under one roof rather than spread out all over the city. You can also offer free rent as a perk for the maintenance personnel, making on site property management of perk for tenants.
Build Your Community
Eugene and Lane county are on the grow! Housing is still struggling to keep up with increased demand in our area. Multiple-family housing offers safe and economical housing relief to new residents and to those caught between home sales and purchases.
Financing May Be Easier
Acquiring a loan on a multi-family unit may be easier than you think. You should always check with your lender first, of course, but there are different loan qualification criteria used to evaluate investment or commercial properties than residential properties. Interest rates and down payments may actually be higher, but consideration of the profit from monthly leases can really improve your loan chances.
Build Faster Equity
When you invest in multi-family property, your equity potential grows quickly. For instance, improving curb appeal, creating cozy living spaces, and adding amenities such as laundry areas, common reception or lounge areas, and security cameras not only improve your property value, they make renters want to live in your unit. Securing long-term leases and keeping vacancies to a minimum make your property worth more to lenders and to the community.
The government likes the idea that you’re providing safe and affordable housing and rewards you with tax incentives. You’re allowed many tax deductions and depreciations and you may qualify for government grants to offset upfront costs. Check with your CPA or tax advisor for more information on tax breaks.
The Bottom Line
The U.S. economy continues to improve and as the housing shortage continues in Lane County and across the Pacific Northwest. The ability to invest in multi-family property will potentially change neighborhoods where you live and consequently, change lives. Yours included! Take a chance on multiple-unit property this year. You won’t be disappointed!