As Armstrong Williams, a multifaceted entrepreneur expressed, “Now, one thing I tell everyone is learn real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risk.” There are many different avenues a real estate investor can choose and find great returns, added value, steady risk, and investing in multi-family properties and apartment real estate can bring all that and more here in Orlando and Central Florida.
There are many different types of real estate investors; flippers, residential, commercial, industrial, mixed-use real estate... the list goes on. Each type holds their very own benefits, so it is essential to know what kind of real estate you would like to be investing in. In the Central Florida market purchasing a single-family rental property investment gets very competitive. Meaning if a 3bd/2bth home that is undervalued hits the market, it is not unlikely to see multiple offers on that property. There are less multifamily real estate investors, many times the single-family investor may feel intimidated about jumping into the multi-family game. However, with the right multi-family property management company in Orlando, you can expect an easier transition to diversify your real estate portfolio.
As a professional Orlando multi-family property management company, we have compiled the top reasons why multi-family and apartment real estate investing may better suit your real estate portfolio.
Diversifying Your Portfolio
One way to balance your investments and reduce risk, is to diversify your investment portfolio. Spreading your assets out into different classes of real estate in Orlando can protect your investments through times of uncertainty. For example Sam Zell, an iconic real estate mogul started out investing in multifamily properties, so he could diversify his portfolio into many different classes of real estate. Now his company Equity Group Investments is worth billions. Diversifying your real estate portfolio can retain and maximize your returns across the board. The real estate market is ever changing, each real estate class will have financial highs and lows. Stability is important and investing in multi-family and apartment real estate assets creates multiple streams of stable passive income.
Faster Portfolio Growth
Acquiring 15 single-family homes in the Orlando or Central Florida market could take years, whereas acquiring one multi-family building, you’d already have 15 units under your belt, in one deal. There are a plethora of aspects that go into the acquisitions of rental properties. Offers, negotiations, inspections, escrow, title etc. Each sale will take time and energy. Investing in multi-family properties gives you the opportunity to grow your portfolio much quicker than the traditional purchase of scattered single-family homes. Depending on how you are purchasing your properties, with scattered single-family homes, you may need to secure 15 different loans for each property. This results in much more time and effort developing and building your desired portfolio.
Increased Cash Flow and Value
One of the best reasons to be investing in Orlando multi-family properties is the increased cash flow. More units generating monthly rent equals more cash flow. There is more cash generated on a monthly basis over single-family investments. There are many other opportunities to generate cash flow and appreciation. With multi-family units you can charge ancillary fees that are a subset of the tenants rental payments. For example, you can have a laundry room, valet trash pickup, storage onsite, etc. Generating cash flow with a multi-family property is much easier to do than a single-family investment. Along with increased cash flow, when you find a multi-family property undervalued in rent, you have a great opportunity to increase rents and in turn increase the properties income. In the future if you go to sell, the steady cash flow looks mighty appealing to other real estate investors. Cap rate shows a real estate investor the rate of return based on the estimated income. Our specialty as an Orlando property management company is taking properties and finding creative and effective ways to increase a property's income and value.
Orlando Multi-family & Apartment Property Management Makes Sense
There are real estate investors out there that self manage their properties, they get bogged down on the day-to-day operations of managing their Orlando rental property. With a 12+ unit multi-family property, property management is a necessity, and easily justified through the increased cash flow. Your property will need to operate like a business, hiring a professional Orlando multi-family property management company will aid is screening tenants, property maintenance, leasing, accounting, rent collection, legal notices etc. With everything being in one place, typically you will get a reduced management per unit fee. It’s important to have the right team in place to build your successful real estate portfolio, and trying to save money with self-managing is not worth it.
Your single-family home is vacant, no cash flow coming in. With multi-family properties it will never be completely vacant. Multi-unit cash flow coming in is much better than having a completely vacant unit. Vacancies in the Orlando market do not last very long compared to other markets. How do I find a qualified tenant? Well, If the unit is accurately priced and move-in ready, you can expect your unit to be leased in 30 days or under. A building with numerous units will alway have tenants paying rent every month generating cash flow. No tenant, no cash flow. That is the beautiful thing about multi-family properties.
Lower Acquisition Cost
If you are building your real estate portfolio, then your per-unit cost is important. In muli-family and apartment investing you get a much better price for the amount of units versus single-family investing. It is a much more cost-effective strategy for real estate investors. Mortgage lenders can offer lower mortgage rates than single-family real estate investments.
Investing in real estate allows success to come from numerous different strategies. Multi-family real estate may be the perfect asset to expand your portfolio. Orlando and Central Florida is currently and will continue to be a great market for multi-family real estate investment properties, the future outlook of 2020 real estate trends and decade look just as bright. The Listing Real Estate Management, Orlando’s trusted choice for multi-family property management, has helped investors successfully find, purchase, manage and increase the value of their assets. If you have any questions, would like to connect or would like a Free Rental Analysis, feel free to reach out to The Listing Real Estate Management, Orlando’s best Property Management Provider.