As of December 15, 2021, the average rent for a 1-bedroom apartment in Houston is currently $1,145 – a 5% increase compared to the previous year. And if you’re looking into the resiliency of the multifamily real estate sector despite the economic downturn and uncertainty then let’s get started. Should you invest in a multifamily property in Houston?
What is a Multifamily Property?
A multifamily property is any residential property that contains more than one housing unit that can be rented out individually like apartment complexes, duplexes, condominiums, and townhomes. If you’re planning to buy a multifamily property, you can either buy the entire building with multiple units or buy a single unit and have it rented out. As the owner, you may choose to live in one of the units, which is known as owner-occupied properties. Whichever way you want to buy your first multifamily, there are a few important things that you need to remember before investing. But first, why should you invest in a multifamily property?
Why Invest in a Multifamily Property?
Investing in multifamily property can be a great way to diversify your investment portfolio. It’s considered the most affordable housing option for people at various stages in their lives considering the many benefits that you can expect when investing in one.
- A great way to generate additional or passive income.
- Bigger and more cashflow potential.
- Ideal for hiring a property manager to handle day-to-day operations.
- Great tax benefits for multifamily investors.
- You may be able to group everything under one ‘blanket‘ insurance policy.
- The multifamily sector has historically remained strong and is more resilient to economic downturns.
- A multifamily property appreciates over time.
- Lower vacancy risk.
- If you live in one of the units, you can qualify for an FHA loan which requires a very small down payment.
- Easier to finance compared to a single-family home.
- Grow your investment portfolio faster.
Things to Remember Before Buying a Multifamily Property
There are many benefits to owning a multifamily property, on the other hand, let’s not forget that there are also downsides such as the cost of buying the property, the necessity of hiring a property management, and competition from more experienced real estate investors. With s many different options, it might be hard to choose which type of investment is for you. So before investing, it’s best to work with a good realtor to guide you if you want to focus on multifamily properties in Houston. That way, you can be sure that you have done a bit of extra legwork and your due diligence to ensure that multifamily investing is indeed the best investment for you.
Are you looking to buy a home for your family while at the same time investing in another property? Or you have already purchased your first single-family home to rent out to your tenants and currently looking for another property to invest in?
Perhaps you have considered adding a multifamily property, a subset of commercial property to your real estate investing portfolio. But like all types of investment, multifamily property investing is not for everyone. And while it’s a lot less complicated than investing in office space, it’s a great way to get started with commercial real estate investing and definitely a worthwhile investment.
Work with Apogee Properties
Apogee Properties is Houston’s leading real estate management company. We work and live in Houston and our property managers are local. We’ve been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate.
Apogee looks forward to hearing from you and sharing what we can offer to your Houston property. Contact us today to learn more about our property management services, and what we can do for you and your rental property.
Get your property managed today!
