MULTI-FAMILY:
How to Invest in Rental

If you are new to real estate investing and trying to learn how to invest in rental properties, here’s a strong case for multi-family. It is one of THE best real estate investments you can make in today’s market. Historically, multi-family has low vacancy rates and unlike other commercial sectors such as retail or office, multi-family has shorter term leases that helps the owner capitalize on changing market conditions quickly. And NOW is a great time to invest in multi-family. As the current economy continues to take its toll, the impact on long-term multi-family investment properties is positive. Demand for multi-family housing is expected to double in the next few years as home ownership rates decline due to tighter lending standards and poor credit scores. Also, the next generation of renters, the Echo Boomers, will increase the renter pool by nearly 5 million people over the next 10 years. More renters in the market will help keep rents trending steadily upwards as property values begin their next climb.

Multi-family units can be owned individually, or with other investors through an LLC or a tenancy in common (TIC) relationship. Before looking at properties, it’s very important to determine how you want to handle ownership. If you choose to invest with other people, make sure everyone involved agrees with the investment strategy, including the exit strategy, upfront. The other important decision to be made is property management. If placing tenants, fixing leaky pipes and collecting rents is not your cup of tea, make sure you partner with a reliable property management company and incorporate their fees into your price projections. Only after determining these factors can you determine what type of property makes the most sense for you.

Why should you know how to invest in rental?

Partner: Ritter Real Estate Services
	Ritter Real Estate Services is one of the creators of Freedom Growth and the entity that helps investors find the right residential or commercial investment opportunities. We are real estate brokers, attorneys, investors and self-directed IRA specialists that have been successfully investing in real estate for years. Read More >>
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Sample Pro Forma
	Click here to review a pro forma on an active property that we analyzed in April of 2009. This was a 10 unit property in the Los Angeles area what was fully rented at the time of listing. Download >>
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Helpful Multi-Family Links
	We always encourage you to do your own research, so check out these sources to find more information on multi-family investment opportunities. Read More >>
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