Do your financial goals include owning investment properties? Howell Investment Finance can help you get the financing in place for your next real estate deal in Ames, IA. Here they explain why investing in multifamily housing is a better strategy than investing in single-family dwellings.
3 Reasons to Invest in Multifamily Housing
1. It Reduces Your Financial Risk
When you invest in a single-family home, only one tenant is paying you rent. If that tenant stops paying rent, moves out overnight, or gets evicted, you have to come up with the entire mortgage payment yourself. With multifamily homes, you can spread your risk across several tenants. When one renter leaves, you still have the others paying every month. This allows you a little buffer for hard times and maximizes your rental income.
2. It’s Easier to Finance
Multifamily homes are more expensive to purchase than single-family dwellings. But your lender will approve the loan based on the merits of the asset, not based on your income or credit score. If the multifamily home produces more than enough income to pay the mortgage, then financing the deal could be the easiest part of becoming an investor.
3. Hiring Property Management Makes Sense
Hiring a property management company can get expensive, but multifamily housing usually provides you with the necessary cash flow to do just that. When you invest in a single-family home, you’re most likely the one who gets the weekend calls about the clogged toilet. The sooner you can hire someone else to take care of that for you, the better.
Are you interested in investing in multifamily housing? Give Howell Investment Finance a call at (515) 233-8228. They are the experts on financing investment properties, and they can assist you with apartment mortgages. Visit their website to learn more about the different loan types and features they offer.