Investors who are dipping their toes in real estate often begin with single family homes. This type of investment property can be a good way to generate passive income (“passive” being a relative term depending on your level of involvement with its property management).
Single family properties also allow investors to become more comfortable with the real estate scene in Columbus and learn what it’s like to own income-generating properties. Then, for many, the next step is to add small multifamily properties to their portfolio.
If you’re thinking about whether to invest in multifamily, below are some considerations to help you evaluate if it’s worth your time, energy, and money.
Benefits of Investing in Multifamily Properties
Small, residential multifamily properties consist of 2-4 units per property. Buildings with 5 or more units are referred to as commercial multifamily properties. Owning investment properties in this niche offer several advantages, including
- Bigger cash flow – When you own multiple units, you’re capitalizing on multiple revenue streams while only having to make a single property investment from you.
- Reduced vacancy impact – Owning multifamily properties alleviates some of the impact resulting from vacancies because, ideally, you still have some units occupied even while you are turning over others.
- Improved scalability – An investment in just one multifamily unit quickly scales your entire portfolio and income stream.
As you consider investing in multifamily in Columbus, ask us your questions! Our team at RL Property Management has been managing properties throughout Franklin County for more than a decade, and we’d love to help you. Get in touch with us to learn more.