Planning to invest in a multifamily building? Don’t know how and where to start? No fuss, you’ve come to the right place. Buying a multifamily property with more than one unit is different than investing in a single family house because it’s an investment that is treated entirely differently in comparison to single home investment. In this guide, we’ll walk you through the steps to buy a multifamily investment property. The entire process of buying a multifamily building usually takes around two to three weeks. It has been observed that mostly investors investing in multifamily real estate investment raise capital through real estate crowdfunding, as it’s one of the easiest ways to get funds for a multifamily building. However, you can apply for multifamily loans to get capital for your multifamily apartment property. Here’re the steps to investing in a multifamily apartment property:
Perform your due diligence
This is the first step to investing in a multifamily home. You need to decide on the right area to invest in. Whatever neighborhood you pick, make sure it has all the living facilities. There’s no point in investing in an area where there’re no living facilities. You need to consider all the aspects involved and think like a tenant when opting for the neighborhood for your multifamily apartment property. To find the best neighborhood, you should shortlist all the areas meeting your requirements. Things you should consider when opting for a multifamily apartment neighborhood include:
Public parking: Tenants prefer buildings with spacious parking area. So you need to make sure your multifamily apartment investment has its own public parking.
School ratings: The area should have a good school rating. The areas close to schools or colleges have higher chances of getting a positive response form tenants.
Attractions/amenities: Restaurants, parks, shopping market should be nearby.
Overall condition: Street lights should work properly, there should be a proper arrangement for trash, and homes and sidewalks should be well maintained.
Transportation: Renters want easy and quick access to and from school, work and other supplies.
Condition of buildings: Run-down properties and homes keep potential tenants from living in the area.
Choose the Right Lender and Get Your Pre-approval Letter
After you have decided on the neighborhood for your multifamily apartment investment, the next step is to pick a reliable lender and acquire your preapproval letter. Make sure your lender offers multifamily loans in your area and has a friendly customer service and easy application process.
Work with a professional realtor
Working with a seasoned real estate agent always pays off. Look for a realtor who specializes in multifamily properties. A professional realtor can help you set up showings, find a good property and negotiate an offer. From making an offer on a multifamily property to getting funds and closing on the property, a well-experienced realtor can help you with everything that you need. So, it’s crucial that you pick the right real estate agent to ensure a smooth multifamily building purchase.