Multi Family Real Estate
Lots of people find residential properties to be attractive investments for lots of reasons. The experts at OKC Commercial Properties will help you upsize your residential dreams and take advantage of investment opportunities in multifamily real estate properties. Apartments and condos offer tremendous investment potential and come in all sorts of shapes and sizes from high-rises, to mid-rises, to walk-ups, to manufactured housing communities or even special purpose housing. We have the expertise and experience to help you find the multifamily property that is right for you at the price you demand.
Multifamily real estate investment is a different game than investing in single family residences. The specialists at OKC Commercial Properties will guide you through finding a property below market value and assessing whether or not it makes sense for your budget. A lot goes into making sure that you find a property at a good price that will benefit your bottom-line for years to come and working with an experienced professional is necessary to avoid costly mistakes.
Several factors go into making sure that you find the right multifamily real estate property for you. These factors include location, total number of units, cost, potential income, as well as the seller.
I am sure you have heard that the first rule of real estate is, “Location, location, location!” Location is not the only factor when selecting a multifamily real estate property to purchase, but it is an important one. Owning a multifamily property means that you have more residences to fill with tenants than single family properties. Selecting a property in a great location will help you ensure that you have high demand for your units and are not struggling to find tenants. OKC Commercial Properties knows the market inside and out, so we can help you find a property in a high-growth area that is highly sought after by renters.
Number of Units
The total number of units is an important consideration for whether or not a multifamily property is right for you. The more units a property has, the more tenants you have to fill and the higher your management costs will be. New investors in multifamily real estate or those with limited budgets can start out by looking at duplexes, triplexes, or four-plexes to reduce your risk. However, even if you are new to multifamily real estate investment, the specialists at OKC Commercial Property will make sure the process is as simple as possible and make sure nothing is overlooked in getting you the best deal. If you are looking for an even larger financial reward and have the bankroll or a group of investors, then you could consider larger multifamily real estate opportunities, such as apartment complexes or mobile home parks.
The cost of a multifamily real estate property depends on a lot of things including market availability, your personal involvement in the property, as well as financing. Property value is never based on the property alone and is always in context to the other properties in the area. Without having an in-depth knowledge of the market, it is impossible to know what a fair price for your target property should be. Your personal involvement with your potential property is also an important factor in the cost equation. Do you plan on taking on some of the property management role yourself or are you planning on having that handled exclusively by property management professionals? Additionally, if you plan on living in one of the units then that changes how many units are available to rent, but it also opens you up to special financing options known as owner-occupied financing. Your ability to get financing is another piece to the puzzle. Your credit score, debt-to-income ratio, as well as how much you can put down on a down payment will all factor into how much you will pay over the life of your multifamily real estate property.
There are two main parts of the equation to figuring out your potential income on multifamily real estate properties: potential rent and expenses. Figuring out whether a multifamily unit is a good investment is not a willy-nilly process. It takes a keen understanding of the market to know how much you can realistically charge for rent and how much it takes to have quality property management. You will be responsible for the cost of the mortgage, as well as any upkeep, maintenance, and management. You should expect that these additional expenses will make up about half of your overall costs of owning the property. OKC Commercial Properties has the experience and knowledge to give you the right numbers and connect you with the best management professionals in our network.
The person or entity selling the multifamily real estate property you want to purchase is an important consideration. Bank-owned properties are handled differently than properties being sold by individual owners. If the person selling the property is trying to solve a cash flow problem of their own, then there is always a chance you can get it at below market value. Knowing the seller’s motivations will change the way you approach negotiations and will impact your bottom-line.
Overall, multifamily real estate investment is a lucrative strategy and the trends suggest that it will continue to be for years to come. More and more, millennials are choosing to rent as opposed to purchase their own single family residences. Same goes for baby boomers who are looking to simplify their lives and shed some of the responsibilities associated with home ownership. Investing in multifamily real estate is a way to take advantage of these trends and grow your wealth. The team at OKC Commercial Properties is excited to help you navigate this growing market and build your investment portfolio.