Rental Property TypesWhy Investing in Multi Family Homes Is a Must for 2020 by Yassine Ugazu December 7, 2019December 5, 2019 by Yassine Ugazu December 7, 2019December 5, 2019Buying multi family homes for investment has always been one of the most effective strategies that you could implement. The sheer amount of cash flow that these income properties can generate makes this venture very profitable. But is investing in multi family homes still a viable option in 2020? Is a multi family home the best investment property that you could invest in? And what are the real estate market trends that will likely shape the US housing market 2020? Keep reading as we answer all these questions and give you an overview of the multi family investment market in 2020.Related: What You Need to Know Before Buying Multi Family Homes for Investment What Makes Investing in Multi Family Properties a Good Decision?Several factors make multi family investment property a profitable option for real estate investors. Let’s take a deeper look at why you should consider making multi family investing your main strategy.1- They are easier to manage As you would expect, managing multi family properties is much easier than taking on multiple separate properties. Since all the units are located in the same building, investing in multi family homes will allow you to deal with any issues swiftly and effectively. Moreover, the high rental income that these investment properties generate will enable you to hire professional property management with ease.2- Getting financing is simplerIt might seem counter-intuitive, but getting financing when investing in multi family homes is much easier than other types of income property. This is because lenders see these real estate investments as less risky relative to properties that rely on a single tenant. Unlike single family homes, multi family properties will still be able to generate positive cash flow even if a tenant becomes insolvent.3- They are the ideal option for building wealth If your main goal in real estate is building wealth, then multi family real estate investing is the ideal approach for you. The rental income that a duplex, triplex or a fourplex can generate is substantially higher than the returns from a single family home. Consequently, your portfolio and overall net worth will soar fairly quickly. Moreover, investing in multi family homes will enable you to benefit from the decent appreciation rates that these properties currently boast.4- They are relatively cheapThis is another aspect that might seem counter-intuitive to some, but multi family homes are cheaper than any other alternative. If we look at the per-unit acquisition cost, investing in multi family apartments or homes will cost less than other types of rental property. This is the best way to invest money if you want multiple streams of income.Now that we have gone over the general benefits of investing in multi family homes, let’s delve into the real estate market trends that will shape 2020.Investing in Multi Family Homes in 2020: 4 Key TrendsBefore buying your first rental property, you must have an idea of the market trends that will shape next year’s housing market. Here are some of the consequential variables that will influence residential real estate in 2020.1- Millennials will become the main drivers of the housing marketThis is a trend that has been shaping up for years now. Unsurprisingly, millennials will make up the majority of property buyers and renters in 2020. As more young people become financially stable and opt to settle down, demand for housing will continue to increase in the coming years. If you are planning on investing in multi family homes, this is an ideal time to do so as there will be no shortage of potential tenants.2- Interest rates will be slightly higher After years of stagnation, mortgage interest rates have begun rising in the past few years. This trend is expected to continue. This is due to a wider monetary policy that seeks to reduce inflation and stabilize the economy as a whole. Having said that, most experts seem to believe that interest rates will remain below the 4% mark. In other words, this is still a good climate for multi family real estate investment.3- The use of unique amenities will be as important as everBefore investing in multi family homes, it’s essential that you understand the increasing importance of amenities. As the real estate market becomes more competitive, traditional amenities have gone from luxuries to expected necessities. As a result, landlords and property owners have to rely on original and unique features to attract tenants. Examples of this include everything from elaborate communal gardens to advanced smart features. In light of this trend, multi family real estate investors should put unique amenities that are worth the money at the center of their marketing strategy.4- Smaller housing markets are becoming increasingly attractive to investorsInvesting in multi family real estate is no longer restricted to major markets like Chicago, New Jersey, or New York. There seems to be a shift from major markets towards second-tier locations. There is a wide array of factors that have led to this shift. The main ones being the stagnation of large housing markets and the growing economy of various second-tier cities. If you happen to live in a major city, investing in multi family homes out of state is an option worth considering.Related: What Are the Best Multifamily Markets 2020 with High Cap Rate?How to Find Multi Family HomesBuying a multi family home might seem complicated if you are not sure where to look. But in reality, finding multi family homes for sale is very easy. You can start looking for investment properties right here on Mashvisor! The Property Finder is an amazing tool that enables you to find multi family property for sale in just a few minutes. Furthermore, you can carry out a thorough multi family real estate investment analysis thanks to the rental property calculator. To learn more about the multi family investment calculator and other Mashvisor tools, click here. Find a Profitable Multi Family PropertyRelated: What’s the Best Way to Find Multi Family Homes for Sale Near Me?Multi Family Real Estate Investment: The Bottom LineInvesting in multi family homes will continue to be a profitable option. Given the market trends that we’re observing right now, this might be the perfect time to become a multi family real estate investor. Buying multi family homes for rent is a strategy that you should seriously consider for next year.Head over to the Mashvisor Property Marketplace to access hundreds of off-markets multi family units for sale! Start Your Investment Property Search! START FREE TRIAL FinancingLocationMillennialsMulti FamilyProperty SearchRental Management 0FacebookTwitterGoogle +PinterestLinkedin Yassine UgazuYassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate. 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