I have seen some troubling images in recent times, all due to the present state of the housing market. I have seen images of wild animals who have taken up residence at abandoned homes, images of neighborhoods that are now virtually empty of their once owner occupants, and stories about groups of former homeowners who have taken to living in tents as they transition forward in their lives.
All of these things are sings of some of the troubling economic times we face and there has been one particular type of real estate that has proven to be somewhat 'economy proof'. That type of real estate is multi-family real estate and there is a very good reason for this. People need a place to live and cost-effective rental housing is a logical place to turn when times are tough.
The past few years of our economy could easily have been titled 'The Rise and Fall of American Homeownership'. During the good times, politicians were raving about record numbers of homeowners across our country and people were basking in a glow of economic bliss that many had never experienced before. However, much of this was founded upon sketchy financing programs and basic issues like housing affordability were cast aside.
The result, as we are now seeing, is a current record number of foreclosures and abandonment of homeownership, as people try to regroup and determine how best to move forward in more challenging economic times. Subdivisions have emptied, homes sit empty, yet people still need a place to call home, even if it's just a stepping stone to a better tomorrow.
What I have found, as an owner of many multi-family properties, is that the same period of time that has caused so much unrest in single family real estate has created a boom in the occupancy and demand for my rental units. Sure, there are also single family homes available to rent, but these are more expensive to rent and also require more maintenance than an apartment.
In short, business is very good as a multi-family apartment owner, and the present economy is showing no immediate signs of a rapid recovery, especially for the residential homeowner. When you are seeking out investment opportunities in real estate, you generally look for properties that can be purchased at a discount, properties with good appreciation, and properties that produce cash flow.
Multi-family properties, when they are purchased properly, offer excellent opportunities for all of these benefits and especially so when demand is high from consumers who are looking to rent. As much as it is a shame to see bad things happening to good people, we as investors must look for opportunities to both profit and meet consumer demand. Multi-family properties offer such a winning combination and are thus worthy of your investment consideration.
1 comments:
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Managing Multi-Family Properties in Tough Economic Times and also describe sings of some of the troubling economic. So thanks for share this all info.
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