It’s time for you to diversify your real estate investment portfolio. Let’s talk about multi family homes in New York State.
Any real estate investor knows the importance of investing in different types of properties. If you’re considering investing in multi family homes, then you’ve probably already invested in single family homes. That’s the traditional path as real estate investors typically find it easier to begin with single family homes and then move on to bigger investments. But, whether you’re a first timer, or a pro, investing in multi family homes is a big step. This blog is going to cover the best locations for a multi family investment in one of the busiest states of the country- New York.
Related: What Are the Best Places to Buy a Vacation Home in New York State?
Where to Invest in Multi Family Homes in New York State
Let’s get straight to the point- you want to know what’s your best bet at multi family homes in the New York State real estate market. With our investment property calculator, we’re able to provide you with the most accurate numbers on investment properties in any neighborhood of any city. Mashvisor’s investment property calculator is also able to analyze multi family properties in New York State. Making money in real estate, however, depends on finding the best real estate investments first. So, according to our data, this is where you should be investing in multi family homes in New York:
Goldens Bridge, NY
- Median Property Price: $871,268
- Monthly Traditional Rental Income: $6,740
- Traditional Cap Rate: 5.75%
- Traditional Cash on Cash Return: 5.75%
- Median Property Price: $499,999
- Monthly Traditional Rental Income: $8,034
- Traditional Cap Rate: 10.48%
- Traditional Cash on Cash Return: 10.48%
Central Avenue- Albany, NY
- Median Property Price: $61,700
- Monthly Traditional Rental Income: $1,119
- Traditional Cap Rate: 6.64%
- Traditional Cash on Cash Return: 6.64%
S. Marketview Heights- Rochester, NY
- Median Property Price: $53,450
- Monthly Traditional Rental Income: $851
- Traditional Cap Rate: 4.14%
- Traditional Cash on Cash Return: 4.14%
Okay, so now you know which locations are the best for real estate investing when it comes to multi family homes in New York State. Now, let’s explain a bit more about this type of property.
Rental Property Investing
The beauty of real estate investing is that there are so many options. Most successful real estate investors have made it so far in their careers because they’ve followed the right rental strategy for their real estate investments. Each type of investment has a different optimal rental strategy. Managing commercial and residential properties differs. When it comes to residential properties, there are two main types: single family homes and multi family homes. You need to know which move is best for you. There are many different rental properties you can include in your investment portfolio. Choosing the right real estate investments is what can successfully build your wealth.
What is a Multi family home?
Multi family homes are a type of rental property also commonly known as apartment complexes. They are buildings with more than one rentable space. That is where the difference lies between them and single family homes. Single family properties only have one ‘single’ rentable unit, whereas multi family properties have ‘multiple’ units available to rent. For more on the differences between these two types of rental property, click here.
You’ve probably noticed the high median property price from the data we’ve provided above. You’ll see high prices for most multi family properties for sale. I mean, they’re large buildings, high prices should be expected. Single unit homes could be sold for as little as $30,000 while the cost of multi family homes is hitting the market at millions. So if it’s so expensive, why invest?
Related: The Ins and Outs of a Multi-Family Investment Property
Why you should invest in multi family homes
#1. They’re a lot easier to finance: A multi family property is more likely to be approved for a loan than the average home. Why? When banks give out loans, they’re looking for security and stability. And that’s what multi family rental properties can provide. They’re known to consistently generate strong cash flow every month. Even with late rent payments and vacancies present, the property can still generate a positive cash flow. This is because of the multiple other tenants in the building. This is why, from a lender’s point of view, this investment is seen as less risky than that of a single family unit- in which losing a tenant is a roadblock to rental income.
#2. Grow your portfolio: For a real estate investor looking to quickly grow their portfolio through rental properties, multi family real estate is the best way to go. Think about it, what’s easier- buying a 20-unit apartment complex or searching for and investing in 20 different single-family properties? The multi family property is clearly the more efficient strategy.
#3. Property management makes financial sense: Some real estate investors don’t enjoy personally managing their properties, but can’t justify hiring a professional property manager for a couple single unit rental properties. A multi family real estate property, however, is a different case. The amount of money generated by multi family investments each month gives you the advantage of being able to afford a property manager. An external professional in property management can help you out in multiple ways. They can find and screen tenants, collect rent payments, handle evictions and maintain the property. That takes the load off your back.
Related: Understanding Multi-Family Investment Property Returns and Benefits
Bottom Line: Multi Family Homes
We’ve given you the most attractive areas for multi family real estate investments in New York State and have covered the what and why of multi family homes. They’re a great investment choice for any real estate investor looking to build their wealth through income producing real estate properties. If you’re interested in data on any other city, sign up for Mashvisor. Our tools cover everything there is to cover in real estate investing. Whether it’s short term rentals or long term rentals, Airbnb rentals or traditional rentals, Mashvisor can find anything you’re interested in. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.