Investing in multi-family properties is a great way to leverage the current real estate market in California City and the surrounding areas. Maybe you’re new to investing and trying to identify a good first opportunity. Or, perhaps you’re diversifying a growing real estate portfolio.
Multi-family homes can be a profitable and low-risk way to earn some money in the real estate market.
Single-family homes can earn you reliable income and long-term appreciation. Multi-family rental property, however, offers less risk which typically translates to more money.
Multifamily properties in the California City rental market help you
reduce your vacancy risk. They’re more cost-effective when it comes to maintenance and management. There are some excellent reasons to invest here, and we hope you’ll consider all of them when you’re looking for a new market and a larger portfolio.
Lower Purchase Price and Maintenance Costs per Investment Property
Lower acquisition costs, especially per-unit, are often what attract investors to multi-family homes. As an investor, you have more purchasing power when you’re looking at multi-family units. Lenders are also able to offer better rates on multi-family properties because you’ll be able to leverage your potential rental income. Most banks are willing to lend money because they know there’s a lower risk of foreclosure and default.
Maintenance is more cost-effective. You can expect volume discounts thanks to your purchasing power.
If you have an apartment building with 12 units,
getting maintenance work done on those properties is a lot easier, cheaper, and faster than it would be to dispatch maintenance teams to 12 separate single-family homes around the city. Multi-family properties make more financial sense and provide better earning opportunities when it comes to preventative issues like pest control, roofing, HVAC servicing, and plumbing. You’re also likely to get a deal on
California City property management.
Lower Vacancy Risk with California City Multi-family Investments
When you own several multi-family properties or an apartment building, you’re bringing in rent from several different sources. That means when one property is vacant, the financial loss isn’t nearly as devastating as it is when you’re
renting out a single-family home. You still have plenty of other income streams to cover that loss. You won’t find yourself without any income at all in a given month.
Growing Your Investment Portfolio
When you’re growing your California City real estate investment portfolio, investing in a multi-family property will move you closer to your goals than a single-family home. You’re able to bring in a handful of properties rather than just one. This gives your entire portfolio some diversity as well as extra strength.
According to recent real estate studies, most investors hold their multi-family rental property for an average of five years. Maybe you have a 10 or 15-year investment plan and you’ll hold onto the assets a bit longer, but most of the investors we work with don’t like to keep their money tied up in one property for too long. You can use the assets you own to conduct 1031 exchanges and keep your assets growing.
