Investing in real estate is a great way to build wealth over time. Many people start their real estate journey with single-family homes, but as your portfolio grows and your investment goals change, you may find yourself wanting to move from single-family properties to multifamily real estate. Multifamily properties, which include duplexes, triplexes, and apartment buildings, can offer a variety of benefits, including higher rental income, economies of scale, and increased cash flow. However, making the transition from single-family to multifamily can be challenging. In this episode, we’ll explore some tips and considerations for making the move to multifamily real estate.
Get ready to build & share the wealth, let's dive in.
Episode timeline:
[00:00 - 02:58]
• Welcome to the quiet wealth podcast.
• The pros and cons of single-family and multi-family real estate.
• Acquiring apartments worth millions of dollars.
• Scaled to your max in residential rentals.
[03:00 - 04:35]
• Advantages of single-family real estate investing.
• Ease of access and purchase process.
• Up to 10 loans based on your credit and income with low down payments.
• Various exit options and can diversify purposefully.
[04:38 - 07:13]
• Disadvantages of single-family real estate investing.
• Having high capital expenditures as you own more properties.
• Getting insurance and maintaining bookkeeping.
• Limited amount of loans.
• Affected by the value of sold neighboring properties.
[07:14 - 10:30]
• Advantages of multi-family real estate investing.
• Simplified process on loans for multiple units.
• You can easily form a team to help you manage a multifamily property.
• The ability to control the property value.
[10:31 - 13:21]
• Disadvantages of multi-family real estate investing.
• Limited exits, your sale is limited to other investors or corporations.
• Not enough diversification.
• The need for partner investors and a solid track record of credit history.
• Needing the combined net worth of the partnership to equal the loan amount.
[13:21 - 16:34]
• How to make the transition?
• Stacking and leverage.
• Why do you need to step back and look at your goals?
• See you on the next episode.
Build Wealth | Create Impact | Leave A Legacy
Episode Highlight:
"Always take a step back and look at your goals. Why are you investing? Does it make sense for you to personally own and manage 31 doors over five properties? Or does it make sense for you to be more hands-off and collect disbursements without being a landlord." -Camilla Jeffs
Are you ready to try passive investing in real estate? Get access to my FREE Passive Investing Masterclass!
https://steadystreaminvestments.com/masterclass/
Follow us at
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Are you ready to try passive investing in real estate? Get access to my FREE Passive Investing Masterclass!
https://steadystreaminvestments.com/masterclass/
Follow us at
https://www.facebook.com/steadystreaminvestments
https://www.instagram.com/quietwealthcommunity/
https://www.tiktok.com/@quietwealth