The real estate market in Denver just keeps getting better and better for everyone involved. The buyers out there looking for houses have some great real estate options while the sellers are getting asking price if not more for their properties. With the continuing growth of this awesome city, it is no surprise more and more people are buying up property and investing in different real estate endeavors.
Recently, I have been working with a couple of investment buyers who are interested in purchasing multi-family buildings. I have had talks with each of them about the pros of adding such an investment to their portfolios because with the continuing increase in rent prices in the city, a multi-family development will bring them more money than any single-family unit could. We have also discussed this investment as a great way to diversify an investors stock or rental portfolio. With more and more millenials choosing to rent these days then purchase, rents continuing to rise and interest rates at a historic low for investors, now is the time more then ever to look into this type of investment.
Below are come reasons why investing in multi-family units are a good idea for investor buyers:
· Cash flow – Like I mentioned, cash flow for a multi-family unit is always going to be more than that of a single-family unit.
· Economies of scale are in multi-unit buildings – Think about it, you have more people living under one roof, with one lawn to maintain, etc. Rather than have multiple properties all over the city to maintain, you have one.
· There’s less competition – Denver is full of single-family house flippers, which is great but also makes the competition strong. Having a mix of single-family homes and multi-family homes will be good for any investors’ portfolio and leave them more opportunities.
· More money when it is time to sell – It is true, when you finally sell your multi-family unit because they obtain a greater dollar amount of appreciation.
If you are thinking it is time to invest or you are looking to add more to your portfolio, feel free to give me a call or drop me an email and let’s chat more about where to start, how to get the most for your money and make you a great investment.