There are different ways that you can use to start investing in real estate. One of the best ways for someone who is starting is buying a multi family property and renting out. You can use the option of four families or less per each building. Through that, you will be able to still get a building using a residential mortgage as you take advantage of some of the lowest interest rates. In this article, you will find reasons why investing in a multi family property can be less risky as compared to other property types. The first reason is competition. You can find that most investors go for properties owned by single families. The investors at 37parallel.com can make the price of the property go up to a point where it is impossible for them to cash flow for you.
You should not depend on appreciation for you to have cash flow. Your properties should be cash flow positive just as they are. In case you are thinking of becoming a landlord, you should buy a unit that has the option of more than one tenant. The other reason is that you have more that one unit that you need to rent out. In the event you buy a single family house and the tenant moves out, you will be needed to pay the entire mortgage until you get someone else to rent it. When it comes to a multi family, it is hard for you to be at a situation whereby all your units are not occupied at the same time, which provides you with some cushion. It is also important for you to note that 37th Parallel Properties make more profits for you each month as compared to single family ones.
It is possible for you to get more rent if you have two units than if you had one of them. That means that you will be getting more money each month for almost the same amount you are expected to pay mortgage. While dealing with multi family units, repair costs for each of them happen to be less. In case you have three single family homes that need roof replacement on each one, you will need to have a lot of money for that.
On the other hand, if you might have a triplex which needs roof replacement, it means that you are replacing three roofs in each of them which reduces the cost per unit. That is the same case when it comes to maintenance since you will need less time for moving from one unit to another and also maximizing on cost of labor. Find interesting facts about investment at http://www.ehow.com/how_2195910_invest.html.