There are many ways to make a fortune in the game of real estate investments. One of the great things about this medium is that it is more flexible and diverse than the stock market. It’s also a great hands-on approach to managing one’s wealth, as opposed to having a money manager who makes decisions on your behalf and guides you in ways that aren’t always in your preferred direction.
The fact that real estate has no single correct answer is also part of its charm. Some moguls got to where they are by becoming commercial and/or residential property developers. Many people purchase homes that are in need of fixing up and then flip them in order to make a profit. Other savvy investors have found their calling by buying rental properties and leasing them out to tenants. After the initial purchases and the monthly operating expenses, leasing property to someone becomes mostly passive income. This frees up people to carry on with their regular lives and full-time jobs, which is what makes this avenue of wealth so appealing to many.
Once you make the decision to invest in a rental property, you have many choices to make. There has been a steady rise in people renting instead of buying in the UK within the past decade, which is great for people interested in getting involved with the industry.
Multi-family residential is one of the options when purchasing a rental property. It is defined as multiple families or individuals living in separate spaces but connected within a single building, such as a block of flats or housing development. This type of housing can be a great deal for a landlord and property owner for several reasons. It is a steady income, as long as you keep the units rented, it is also a great way to diversify your wealth and gain some astounding tax benefits. You have the freedom to hire a property manager or take on the role yourself if you feel up to the job. If you need room and board, you can even reside in one of the units personally.
Before you can start the vetting process for the ideal tenants, there are several steps you must complete beforehand. First, you should do your due diligence of the area you want to buy. Look at recent home prices and scout the neighbourhoods for traits that might appeal to a future resident. You want people to have an incentive to live in your building. Then you need a lender who specializes in multifamily dwellings. You will also need an estate agent who is well-versed in multi-family properties. After all these steps, it’s time to find your ideal tenants.