The Best Ways to Invest in Real Estate: Part 1

We're constantly asked about single-family versus multiple family homes from an investment perspective. Today, we're focusing on multi-family property investing. Want to sell your home? Get a home value report
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As real estate professionals, we're constantly asked whether single-family or multi-family investment properties are a better option. It's one of the great debates in the world of real estate investments.

Because these properties are viewed so differently by investors, insurers, and lenders, it’s important to understand which investment does what for you as an investor and buyer. Deciding between single-family or multi-family properties is largely about personal preference and goals, as well. Today, in the first video of our series, let’s discuss multi-family investments.

A multi-family property is defined as residential housing with two or more units under one roof or several buildings within one common complex. The most common examples are duplexes, townhouses, and some types of condos. As an investor, there are several advantages of owning a multi-family property like one these.

Multi-family investments have less risk and a great cash flow opportunity.

Multi-family investments represent an innovative cash flow opportunity to generate income from a single investment. Rather than rely on one tenant for rent, you have multiple families or tenants paying rent. You also have more control over the value. The more income a property receives, the higher the value is. Because multi-family properties are comprised of more units, these types of investments are generally valued higher than single-family homes. With more tenants, you're also presented with less risk.

Rather than purchasing individual properties and building you business one transaction at a time, multi-family investments are ideal for those who are looking to both build a business and offset risk.

In our next installment, we'll discuss single-family investments to give you the full picture. In the meantime, if you have any questions about property investing or about McAllen real estate in general, give me a call or send me an email. We'd love to be a resource for you!

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