As anyone who has ventured into the wicked world of real estate will vouch, making those first steps is incredibly difficult. At times it can be hard to persevere and keep the faith, and just hope that a good proposition lands in your fingers.
In a market like Houston, things can be even more daunting. The market is vast, it can be expensive and to top it off, it’s also competitive. This is one of the reasons why people like Allen R Hartman are huge advocates of multi-family properties.
Through the course of this guide we will now take a look at these properties in detail, and highlight just why they are one of the best options for anyone who is looking to get their foot in the Houston real estate market door.
There’s much less risk involved
The term “multi-family investment” sounds complicated and the immediate assumption is that this might incorporate a lot of risk. Well, truth be told, there is actually very little risk.
If you were to turn to a photo of the typical investment; it’s usually comprised of one family. This means that if this family decides they want to leave the property, you are left with a gaping hole in your income. With the multi-family option meanwhile, this doesn’t occur. Sure, families will come and go, but you will at least have a cushion of rent coming in for those that do remain. Generally, this will be sufficient to cover the mortgage costs of the building.
It’s a less competitive field
This next issue leads on perfectly from the previous. Again, due to the fact that so many people feel as though this area of investing is complex, the general consensus is that it’s too difficult to get involved in. Ultimately, competition for multi-family investments tends to be lower. As we all know, this is something that opens up a wealth of opportunities for you – many of which wouldn’t exist in other forms of investment.
The other reason why it’s less competitive is because it is of course more expensive. However, try not to let this be off-putting. As we’ve already mentioned, the risks are much lower anyway and this should open up the possibility of spending more from the outset.
There are both big and small opportunities
Something else which tends to be misunderstood about this form of investment is the size. Again, there are a lot of misconceptions about this, primarily because of the “multi-family” term. This immediately suggests that it is huge in size but in truth, this needn’t be the case.
There are small multi-family options, which obviously present much lower investments from the start. These options might simply allow two families to reside in the building. At the same time, if you have some experience behind you, you can turn to larger ones. It’s completely versatile, and this is something which opens it up to a vast array of different investors.