Investing in a multifamily property means buying a building that offers multiple units for rent, such as condo buildings, apartment complexes, or duplexes. These types of properties attract investors because they can boost net income and improve cash flow. Let’s take a closer look at how investing in these properties works and how you can get into it.

Reasons to Consider Multifamily Investing

If you’re an investor, you may wonder if buying a multifamily property is a good idea. There are certainly many things you need to consider before you get into it. For instance, some people go for it because they are interested in passive real estate investing, while others want to diversify their portfolios. Some of the reasons a multifamily property may be right for you include:

• You want to reduce your cost of living by moving into one of the units and renting the rest
• You want to generate extra income
• The timing feels right to you.

How to Get Started

If you feel investing in a multifamily property is right, here’s how you can start.

Find a Property

The first step is to find a multifamily property you can invest in. Location is almost everything in real estate. It will determine if you’ll attract renters and how much you’ll charge them. You can also look for a real estate agent to help you find the right property.

Get a Loan

The next step is finding a lender. Talk to multiple loan providers in the market and hear their interest rates and other fees. Some lenders are only willing to finance a two- or three-unit property, while others don’t mind financing bigger units. Shop around until you find someone that meets your criteria.

Make an Offer

Your agent can help you in this step as they are more familiar with real estate transactions. They will negotiate with the seller’s agent on your behalf. Don’t be discouraged if you get a counteroffer. You might do a few rounds of renegotiation, but this is the nature of the business. Eventually, you and the seller will find a figure you both agree to.

Has a multifamily property caught your eye, but you lack the funds to invest in it? Talk to Atlas Capital Solutions. We can help you secure a loan and expand your investment portfolio. Call us today for more information.