Real estate investments seem to be rising in popularity. It appeals to people that can’t withstand the volatility of the stock market especially. Arguably, buying a multifamily home in Miami is an even better investment than investing in the stock market. If you want to have an active role in growing your capital you will love this job. And the best thing about it is that you can use one of the many strategies successfully. You just need to pick one and stick to it.
Why invest in a multifamily home in Miami?
Rental property investments are preferred investment strategies for all of you that want an additional source of income along with the appreciation of the estate itself. If we look at the real estate trends in 2020, we can see that downsizing and multifamily homes are very popular. And that works for you.
To clarify from the beginning, multifamily home often is referred to as an apartment complex, depending on its size. Now, we all know that it is much easier to enter the scene when building a portfolio of small homes. However, larger complexes have several advantages. Here are some reasons why.
Buying a multifamily home in Miami can be much easier than buying a single-family one.
They’re more expensive but easier to finance
You can be pretty much sure that the price of buying a multifamily home in Miami will be a lot higher than buying a single-family one. So, it may seem much easier to get a loan for a smaller home. But, you couldn’t be more wrong. In fact, you’re much more likely to get approved by a bank for a loan for this type of building.
This is because these types of buildings generate an amazing cash flow every month, and banks know that. Even if you have a few tenants that are late with their payments, this stays. Just think about it, if you have a single-family home and your tenant leaves, it is immediately 100% vacant. And no one wants that.
All of this makes multifamily homes much safer investment as you don’t really risk anything. Additionally, if you ever decide to perform a simple move to any part of Florida, you always have a place to stay. And that’s something.
It’s great for growing a portfolio
If your idea of doing this business is to make a relatively large portfolio of rental units, you can do this in no time. Whether you’re buying a property in Miami as a foreign buyer or as a local, buying a 10 unit apartment building will always be easier than buying 10 single-family homes. With the latter option, you need to make contact with 10 different sellers, to conduct 10 different inspections, and maybe even to open up 10 different loans. therefore, the first option will also be cheaper in the end.
If you want to grow your portfolio quickly, this is the best way to do it.
You can go with property management
If you don’t want to deal with property management after buying a multifamily home in Miami, you’re in luck. You’ll find yourself in a position where you can hire a property manager and that it makes sense. He or she can collect rents, screen tenants, handle evictions, etc. What this means for you is that you don’t have to even live in a place where you have a property. And that’s something that you wouldn’t be able to afford with just a few single-family homes.