Are you thinking about investing in multifamily properties in 2021? If so, this is a smart decision to make because multifamily will continue to be an excellent investment choice in 2021 even as we face a new President, and continued economic uncertainty in the United States.
If you’re still ‘on the fence’ about investing in a multifamily property, this article will provide you with several reasons why you shouldn’t hesitate to invest in multifamily next year.
It’s A Great Choice Regardless If You Buy New, Or Build From Ground Up
The first thing that you need to do before investing in a multi-family property is to decide to either build or buy.
If your goal is to build a multi-family property from the ground up, you can have confidence that the property is going to be built using great materials, reliable contractors, and it will continue to produce a return on investment for you for years to come.
|Apartment building costs|
|National average cost||$10.5 million|
|Average range||$4.5-$50 million|
|Maximum cost||$100 million|
Source – fixr.com
Yes, indeed, the cost to build a new multi-family property may not be something that every investor can afford to right now but, the reality is that if you choose to build a new apartment complex, or multi-family property, you will have confidence in the construction of that property.
Having peace of mind as an investor is huge because, once construction is done, you can know without a shadow of a doubt that the foundation, and every other part of your multifamily property, were built by quality contractors who use excellent materials and the right construction tradesman.
If like most investors, you choose to purchase a pre-built multi-family property, the obvious benefit is that with the pre-built property you can get into profit quicker than you would when building a multi-family property from the ground up.
The good news about investing in a pre-built multi-family property is that there are a wide variety of options available nationwide.
As a new investor, you don’t just have to purchase a multi-unit apartment complex, you also have the option of investing in a duplex, triplex, or fourplex.
These multi-family properties are often more cost-effective than a large-scale apartment complex and they give investors the experience that they need in multifamily which will prepare them for ultimately investing in a large-scale multifamily complex.
Multifamily Properties Are Robust During Economic Downturns
With 2021 fast approaching, one thing that you do have to be prepared for as an investor is the possibility of upheaval in the stock market, and a longer economic recession than what most analysts predict.
The great thing about multi-family properties is that they have also been proven to be robust during economic downturns, especially during the last financial crisis in 2008.
During the last period of economic instability in the United States, single-family homes took a beating and many landlords ended up in serious financial trouble because their rental properties were left vacant for months.
Even though single-family had its difficulties during the last recession, the reality is that multifamily properties remained resilient.
One of the key reasons why multifamily properties remained resilient during the last economic recession is the simple fact that with multifamily properties, if one unit is vacant, owners can rely upon the occupied units to cover their mortgage and other expenses until they’re able to fill the vacancy.
Contrast this to owning single-family homes where if a single-family home has a vacancy, the owner will naturally be responsible for paying for the mortgage and expenses that the property has until they can fill that vacancy.
“If you look at multifamily, ultimately, it is a utility. People have to have a place to live, so buy the very nature of the asset class, it fills an essential need rather than an inessential need, like a shopping center,” – Pat Jackson, founder, and CEO of Sabal Capital,
Multifamily Owners Have Tons Of Options
Another excellent reason to invest in multifamily properties in 2021 is that investors always have plenty of options for the multifamily properties that they are investing in.
With multi-family, owners can invest in large-scale apartment complexes of 30 units or more, duplexes, fourplexes, triplexes, or other multifamily properties.
The sky’s the limit, and with plenty of options out there to choose from, investors who purchase multifamily properties have more freedom and flexibility available compared to owners who invest in single-family homes, especially if they turn their properties into student housing.
Contact Trier Capital
At Trier Capital, our company has built an investment team that specializes in sourcing, acquiring, and managing multifamily properties.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
For more information about partnering with us so you can invest in multifamily properties, contact me today by calling (630) 229-2383 or click here.