Multi family properties are some of the best real estate investments that you can make. Their ability to generate high rental income coupled with their ease of financing makes them the ideal choice for most real estate investors. But as you have probably noticed, multi family homes are not as readily available on the market as other types of property. So how would you go about finding multi family homes for sale? Keep reading as we reveal the easiest and most effective way to do so.
Why Invest in Multi Family Homes?
Before showing you how to find multi family homes for sale, we must first go over the main pros of making a multi family real estate investment. Here are some of the benefits of acquiring a multi family investment property.
1- Multi family homes are easy to finance
Financing is an essential pillar of real estate investing. The easier it is to get financing, the more streamlined the real estate investment strategy will be. In the case of multi family homes, getting investment property financing is remarkably easy. It might sound counter-intuitive, but you are more likely to get a multi family home loan application approved than one for a regular home. The reason for this is rather simple. Multi family homes generate consistent cash flow which makes them a safe investment from a lender’s perspective.
2- They generate strong cash flow
Like we mentioned above, multi family homes can generate a sizable income relative to other investment properties. This makes them the perfect option for real estate investors who are looking to grow their portfolio in a rapid fashion. In fact, multi family homes for rent will start generating positive cash flow within a few months. When you add this to the increase in value through appreciation, it becomes apparent that this is one of the most effective wealth-building strategies in real estate.
3- Multi family properties are easy to manage
The strong cash flow and easy financing are not the only benefits of investing in multi family homes. Another valuable advantage of these homes is the sheer convenience of the rental property management process. Needless to say, handling a single building with multiple units is much easier than taking on separate rental properties. Furthermore, the high rental income that these investment properties generate allows investors to hire professional property management without severely impacting their bottom line.
Now that you’re aware of the pros of investing in these rental properties, let’s delve into how you can find multi family homes for sale.
Mashvisor: The Best Way to Find Multi Family Homes for Sale
Finding multi family property for sale is easy once you have figured out the ins and outs of the market. Like anything in real estate, investors have a plethora of options to choose from, with each one having its own set of benefits and drawbacks. Our favorite way to find multi family homes for sale is to use Mashvisor’s tools.
1- Find multi family properties using the multi family investment calculator
The Mashvisor investment property calculator is one of the most comprehensive real estate tools on the market. It boasts a wide array of functions that allow you to identify the ideal investment property for your needs. The most basic of these functions is the ability to eliminate condos, single family home investments, and other types of properties from the search results.
The investment calculator also boasts a neighborhood analysis feature that is extremely effective when it comes to filtering multi family real estate listings. As a matter of fact, users can restrict the investment property search to the parameters of their strategy. For example, a real estate investor will be able to use filters such as occupancy rate, rental income, and listing price to create personalized listings that match their preferences.
2- Do a multi family real estate investment analysis on Mashvisor
Mashvisor’s tools can do more than just find you a cluster of properties that fit your investment criteria. In fact, our tools allow you to carry out a thorough investment property analysis. Once you have sifted through several multi family houses for sale, you can pick any property to get this process started. A simple click on any of the multi family homes for sale will take you to a page that contains all the relevant metrics about each real estate property. The most interesting thing about this tool is the fact that it is interactive. This means that you will be able to adjust the values in a way that reflects your investment objectives.
Alternative Method: Hire a real estate agent to find multi family homes for sale
Mashvisor reduces the work of a property search drastically. However, if you don’t feel like doing any work, you can always hire a real estate agent. A professional can help you find multi family real estate for sale and negotiate a good deal on your behalf. Generally speaking, experienced agents tend to be aware of good deals before they even hit the market. A good real estate agent might be able to connect you with a seller in the housing market of your choosing. Having said that, it’s worth keeping in mind that real estate agent fees can be quite exorbitant. Having an agent handle the entire process is by no means a cost-effective option.
Finalizing the Real Estate Deal
Once the search for multi family homes for sale is over, the next step is to secure financing for the transaction. At this point, your lender will request information that pertains to every aspect of the deal. Here’s a brief overview of what you will have to provide your lender with before you can receive a financing commitment:
- An appraisal of the investment property
- A detailed description of the property
- A list of all assets and liabilities
- Source of the down payment
- Lease copies
The Bottom Line
Finding multi family homes for sale should be an easy task if you stick to the steps outlined above. There is no shortage of reasons to invest in these rental properties and judging by the US housing market 2020 trends, a multi family home looks like an investment for the future.