Real estate investments are usually a good strategy for entrepreneurs who want to build their own business. Across cities and towns, more people are buying homes to rent. However, is it better to buy a cluster of single-family homes? Or is investing in multifamily real estate the way to go? These are the questions today’s business men and women are asking. Luckily, there are some simple answers.

One Stop Shop

Real estate investors who purchase and rent a series of single-family homes soon realize that maintaining those properties is time intensive. Far more than many anticipate. There are multiple lawns to mow and drives to plow, rent collection or monthly inspections can take the better part of the day, and each single-family dwelling comes with its own set of bills to pay.

Investing in a multifamily or multi-unit property reduces all of that work. Now there is only one lawn to mow and one parking lot to plow, building bills come in one mailing rather than many individual stacks, and visiting tenants takes no more work than walking up and down the stairs or a swift ride on the elevator. When everything is easier, investors benefit from economy of scale and tenants benefit from a better relationship with their property owner.

A Small Pool of Investors

For most investors, unless they are experienced or part of a larger business, purchasing an apartment complex seems out of their league. The idea of buying a building can be insurmountable. That’s where multifamily real estate investors have an edge.

While other investors are wrapped up in schemes to buy, flip and sell single-family homes or renovate and rent a group of homes, dive in and see what multifamily units are available. Talk to a real estate agent about what it would take to own a small building complex. You might be surprised at how easy it is.

Up and Running Faster

While others are spending countless hours finding, inspecting, offering, negotiating and closing on several single-family homes, the multifamily real estate investor only does that once. In the time it takes other investors to get up on their feet and make their investments work for them, the multifamily investor may be up, running, and collecting rent.

Before you decide to purchase your first rental property, take some time to find out more about the pros and cons of single-family and multifamily real estate ownership. It might be enough to shift the way you think about owning and managing rental property.

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