Multifamily is an excellent way to get started in real estate investing, and offers many advantages. Of all segments of real estate, the Multifamily fits into the Residential side and/or the Commercial side. This should seem obvious, but the reason for pointing this out is to show the flexibility offered by Multifamily. It typically offers the shortest vacancy periods, and often the lowest cost to finance; even allowing the buyer/investor to secure a “owner-occupant” mortgage if the owner will be living in one of the units, if it is a 4-unit or less property.
A Multifamily property also tends to offer a lower cost-per-square foot than a single family residence because it allows the costs of the “common areas” to be shared. Examples of common areas are the lot (the yard), the roof, certain utility systems, foundation, etc.
Any owner/investor of residential properties kept and offered for rent must be aware of Federal and State laws against discrimination and health hazards such as lead paint. Along these lines, if the property is strictly classified as “Commercial” instead of residential, then Ohio laws allow the sales process to be treated much more of a “Buyer Beware” process, offering fewer legal protections, such as not requiring a Property Disclosure by the Seller.
An area within the Multifamily sector which is showing great opportunity at this point in time is Senior Housing. Click to see why.