Learn from our property management experts!
Multifamily properties may range in size from duplexes and townhomes to larger multi-unit apartment buildings. Regardless of the number of units, you as an owner always have the ability to make a strong investment with excellent yields. Here are a few key considerations to review and ensure you are making a decision that is right for you.
In order to determine if you are receiving a fair price from the seller, it is wise to check the records of the property’s previous sale prices. Your realtor can help you locate these, and they are important to check against the current housing market and inflation. If you determine that the price has not been set fairly, you will want to negotiate this with the seller. An upward trend in the sale prices will also indicate that this area is increasing in value and therefore a strong investment. Also be sure to consider the recent sale prices for other multifamily properties in the area. This will also help you determine a fair price while reviewing similar properties to stay competitive.
The general area of the property is also key to ensuring you are making a reliable investment. First, consider nearby amenities. Are they in good condition and attractive to the residents you hope to attract? If the area is slowly improving over time, you may receive a better price on the sale but risk not having full occupancy or the desired income. Next, review the proximity to major highways, employers, and attractions. Residents may be more inclined to pay a higher rent if they have convenient access to valued amenities. Finally, determine how convenient the location will be for you as the owner. If you live in Nashville or the surrounding area but are looking to invest in the growing communities of Smyrna, LaVergne, or Murfreesboro, you may want to consider using a property management company. MMC Properties has decades of experience managing properties in these communities and can provide your residents with a high-quality experience. This also allows you to focus on the investment itself without spending time on the day-to-day operations and tenant needs.
The number of units will help you determine the income you can expect to receive for the property. For new investors, it may be ideal to consider properties with two to six units. This ensures the investment is low risk, because if one tenant moves out, you can still receive income while waiting for another to lease the unit. Whether you are a seasoned multifamily property investor or just starting out for the first time, a property management company can help you retain residents and keep occupancy high. Your personal time is valuable, and the professionals at MMC Properties are dedicated to the care of your multifamily rental residents. They provide maintenance, resident support, and even billing services all on your behalf. When determining your estimated income, you will want to consider this vital service in your budget to ensure your residents are cared for and the return on your investment stays high.
To speak with an expert at MMC Properties today, call (615) 849-9006.