Multi-Family Dwellings are Powerful Real Estate Investments
posted in Property Management |The reason I am breaking my own rules here is because I get asked, way too often, in the lull following an after-dinner speech what is it exactly that makes me choose to focus on multi-family dwellings as opposed to single-family ones.
I know that the person who asks that question is usually a potential real estate investor themselves and I also know that at the forefront of their minds are all the big negatives associated with multi-family dwellings: costly maintenance, irate tenants, absconding rent payers and the usual nightmare associated with running a large property with many difficult issues.
The fact is that when you sit down and really analyze the scene you begin to realize that the trouble involved in closing a deal with a multi-family dwelling is not that much more than what you have to go through for a single-family one. In a single-family dwelling you may think you are in control more but that is an illusion. It takes just a month or two of the property being vacant and you having to run around to advertise it, screen the new tenant and get them in, to wipe out your profit for the year, or as good as.
In a multi-family dwelling the risk of that happening is spread amongst many tenants as opposed to one. An apartment can run up a large repair bill, or remain empty for four months and you can still show up a profit at the end of the year because you have spread the income stream you expect to several tenants rather than just one.
It was exactly this ability to spread risks and achieve greater savings through an economy of sale that led me to focus on multi-family dwellings as a powerful real estate investment tool. In addition the larger scale of owning more than just one apartment or housing block has allowed me to put in place a professional management company that deals with all tenants and manages the properties on my behalf.
This way I am free to focus on the important aspects of my career like my next real estate move and where I will go on holidays, which is what life in the real estate investment business should be all about in the first place.
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David Lindahl, also known as the “Apartment King” has been successfully investing in single family homes and apartments for the last 10 years. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! If you would like a free copy of the Special Report: 27 Ways to Buy a Multi-Family Property with No Money Down, please go to http://www.davespecialoffer.com/
Article Source: http://EzineArticles.com/?expert=Dave_Lindahl
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