26 Sep Buying Seattle Rentals? Consider Multi-Unit Housing
When you’re buying Seattle rentals, have you considered purchasing multi-family housing? Multi-family can help you consolidate your real estate interests into a single housing complex. This can be a benefit for your property business and to your bottom line.
The Timing Is Good
Real estate is often about timing, and according to Business Insider, it’s the right time to consider buying a multi-family housing unit. With 75 million Baby Boomers headed into retirement, “many of today’s apartment complexes may be converted to retirement communities in the future.” Even if they don’t become formal retirement communities, they are a haven for those who are looking to downsize but live a life with urban amenities. At the same time, Millennials are still relatively mobile and move to find work in cities such as Seattle, where there are many tech jobs available. With two major groups of people looking for apartments, owning multi-family Seattle rentals just makes sense.
You Can Find a Starter Property
If you’re trying to start small, multi-family homes might seem like a large leap into the world of being a landlord. However, there are opportunities to find a starter multi-family property that can be just as cost-effective as a single family home. According to Madden Real Estate, “many multi-family homes are selling for the same asking prices as single family detached homes with similar features.” This means that although your rent might be slightly lower per property, you’ll be able to charge it more than once, making these properties a sound investment. For owners who also need a place to live, there are opportunities to live on site or use one of the properties as a vacation home as well.
Multi-Family Units Are Easier to Finance
While spending a larger amount of money on a single building might seem nerve-wracking, the banks think that it’s a good bet. In fact, according to Investopedia, “a multi-family property is more likely to be approved by a bank for a loan than the average home. That’s because multi-family real estate consistently generates a strong cash flow every month.”
Multi-Family Rentals Spread Out Your Risk
When you buy a single family home and rent it out, all of your rental income comes from that single property. If your tenants decide to leave, you could be without an income for a month or more as you receive applications and screen tenants. With a multi-family property, you have many tenants. That means that if one leaves, you still have those other tenants to cover the bills.
Find Efficiencies With Multi-Family Rentals
Do you want to upgrade the sinks in your rental properties? If you have many single family homes, you need to find sinks that match each property. If you have multi-family units, chances are you can purchase new sinks in bulk. This can reduce the cost per unit. You can also keep a stockpile of certain items that you purchase in bulk to ensure that you have some on hand in case you need to make a repair in a unit.
Managing Your Seattle Rentals
Owning multi-family Seattle rentals can be an excellent financial choice. It can also be a lot of work. Multi-family rentals are more efficient in some respects, but you’re still working with many different families, and when families decide to move on from your rentals, you need to manage those moves. There are also many small problems to fix, from a leaky faucet to neighbors who are annoyed by each others’ noise. If you’re not able to manage all of these complexities, you don’t need to give up on Seattle rentals. You just need to contact the experts. Consider asking a Seattle property management company like Lori Gill and Associates to help you with the details, so that you can enjoy owning your multi-unit housing without having to manage every small detail.
Are you curious about the possibility of multi-family Seattle rentals? Lori Gill and Associates can help. We specialize in property rentals in the Seattle area. Contact us today and learn more about the Seattle property management services that we provide.