By J.P. Dahdah, Founder & CEO of Vantage
Cash is king. With the increase in rental rates in some locations, property investors are now opting to buy multi-unit properties to improve their cash flow and reduce possible losses. But is a multi-unit asset really a good investment? Here are things to consider:
1. Stable cash flow. Logically, with more units available, more rental income should be flowing, lowering the risk of vacancy for your real estate IRA. Because if you have a single-family house and you lose your tenant, you’ll have zero income; but with multiple units available for several tenants, losing one or even some of them would not debilitate you.
2. Economies of scale. Managing and maintaining several properties can be time-consuming and expensive. But with a multi-unit property, you can hire one manager to take charge of all your business concerns. Repairs and maintenance also become economical for your real estate IRA, as you have only one roof and one lawn to maintain.
3. High returns on investment. Multi-unit properties provide an attractive exit strategy. If you want to turn your investments into cash by selling your asset, you can expect a substantial payout due to price appreciation. And because they offer a higher return for all types of investment, they are easier to sell than other real estate types.
So if you are an income-oriented IRA real estate investor, the multi-unit property is well worth investigating for your portfolio.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.