Buying Multi-Unit Properties - Top 3 Questions Answered
Commercial vs Residential Multi-Unit Properties
Commercial Property is 6 or more units per building
Residential Property is 1-4 units per building
Top 3 Questions
What’s my return?
- The return on investment (ROI) comes from 4 different sources: mortgage paydown, passive market appreciation, forced appreciation through renovations and cashflow.
This model has been proven time and time again and typically allows investor capital to be returned in full between years 5 & 7 depending on the deal. In some cases, the profits of the building allow for it to be sooner. Using a long term buy and hold strategy the returns can be considered infinite once the investor capital has been returned in full.
What happens if the market crashes?
Unlike residential properties that have the potential to fluctuate drastically with the market; commercial properties are less affected because their value is heavily based on the buildings income and expenses.
- If the market crashes do the rents crash as well? Rents may decline slightly but people still need a place to live and will continue paying rent.
- Having vacancies in a multi unit apartment building is less risky than a residential rental
- In the event of 1 vacancy, would you rather be out 50% rental income in a duplex or 8.3% in a 12 unit apartment?
What’s the risk?
As with any investment there is always risk involved. We have a power team of 14 active investors with a combined real estate value of $180,000,000.00.
We purchase multi-unit properties (12-36 units) with investor capital. It is our #1 priority to pay investors capital back first and foremost before taking any operating profits for ourselves.
Depending on the building, the investor ownership is between 40-60% Joint venture opportunities and allows our clients to participate in bigger deals together.
Buy and hold strategies are essential for creating long-term wealth through passive income streams.
What Can We Offer?
Experienced and reputable team
Exclusive local connections
Full time deal management
Quarterly reports on progress