Learn the ways a multifamily investment can generate good cash flow and increase your wealth over time.
With multifamily property investments, you have the potential to benefit from not one, not two, not three, but four sources of revenue that contribute to your ROI.
In this article, I’m going to cut right to the chase and break down the four sources of returns associated with multifamily real estate investments. Buckle up.
If it’s cash flow you’re after, commercial real estate is a pretty attractive option, and multifamily properties are arguably the strongest investment.
A quality, well-managed, strategically located multifamily property provides a steady stream of cash in the form of rental income. I’ll quickly run over how to calculate the cash returns generated from your multifamily investment. Start by multiplying the monthly rent per unit by the number of units to get the gross monthly cash flow. Then, take that...
Mistake #1: Fail To Treat Real Estate Investing Like A Real Biz
We’ve seen too many people treat real estate investing like a hobby versus a proper business. They get caught up in emotion, FOMO, and can't resist the allure of being a Landlord / Investor / Genius. So they jump in with two feet, leaping before they look too deep, and making mistakes that are avoidable.
In reality, most real estate investing mistakes are avoidable with education, mentoring, analysis models, data sources and a bit of practice and patience. This is particularly so in the US and other efficient western markets, where the formula for success is a data driven equation anyone can learn to master.
The price of the property is X, taxes and insurance equals Y, a property manager charges Z, and the rent you can charge a tenant is within a known range for that street and neighborhood. Add in a bit of maintenance and vacancy to cushion the ebbs and flows of landlord...