Factors to Consider in Selecting a Multi-Unit Real Estate Investment

 |  Investing in Real Estate
multi-unit real estate

By J.P. Dahdah, Founder & CEO of Vantage

In one of our most recent posts, The Advantages of Owning a Multi-Unit Property, we discussed the potential and benefits of investing in a multi-unit property.

But what makes a good property investment for your IRA? Here are some factors to guide your buying criteria:

1. Investment purpose. Is your IRA buying to sell in a short time frame or are you looking to hold on and rent out all the units in the meantime? How you want to make use of the property will have an impact on how you will value the property at both entry and exit points of the investment.

2. Costs and financing. Inquire about your financing options by first asking the terms and conditions of the seller. Find out what the transaction costs are, as well as other expenses related to closing the deal. A good IRA real estate investment should be available at reasonable prices and with flexible terms. You also need to consider the costs of repairs and maintenance once your IRA has purchased the property.

3. Investment horizon. Time is always an essential element, especially when it comes to real estate. Prices fluctuate and the market value of property changes due to the appreciation of land values or depreciation of other a building. Whether you’re a short-term or long-term investor will play a role in how you well you manage your investment.

4. Strategic location. The location of the property will affect the value of the property and its marketability. Multifamily properties located in highly urbanized areas are much easier to market.

With these factors in mind, you don’t have to fail miserably on your first purchase. The outcome of your IRA real estate investment will greatly depend on the amount and quality of time you spend on evaluating your options.

For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.