How to make serious money from real estate: Top tips from the experts
Follow these actionable steps to get started on the road to prosperity
Investing in real estate is often lauded as one of the best ways to get a great return. If you are looking to maximize the return on your investment, a multifamily property might be the answer. Follow these tips to help you get started, and set yourself firmly on the path to financial prosperity.
Start small
When you are first starting out, small multifamily properties of 4-10 units can be a great investment choice. They are relatively inexpensive to purchase, costing roughly the same as a single-family home. What’s more, there can be less competition in the market for this type of property versus a larger multifamily property. The return on investment is much higher than with a single-family home because you have multiple rental income sources instead of just one.
Make sure your rent is right
Before you buy a multifamily property make sure the seller provides you with the rental information, so you can see how much they are currently charging tenants. Take the time to conduct a thorough market analysis — what are similar units nearby with similar amenities renting for? Ensure that your rent is in line with this. Furthermore, think about any small improvements you can make that will increase the perceived value — such as a kitchen remodel, tidying up the landscaping, or adding/improving shared outdoor spaces. Minor changes like these will increase the amount that renters are willing to pay to live in your property.
Consider a renovation
Buying a property in need of a complete overhaul can be daunting, but when done right the rewards can be tremendous. Generally, you can get a great price on a rundown property and by being strategic with your improvements you can generate a great return on your investment. An additional benefit of overhauling then selling a multifamily property versus a single-family home is that you have the ability to collect rent from tenants while the property is on the market for resale.
By following these tips from the experts you can ensure that you are realizing the full potential of your real estate investment. If you need advice on investing or selling, the team at 100Units.com are ready to help. As multifamily property investment advisors, we take the time to evaluate your investment goals to help you attain the long-term success and results you want. Contact us today to get started.