fix and flip<\/a> for a profit. However, turnkey properties may still be great options for those who work full-time jobs and want to break into real estate investing.<\/p>\nDuplexes, triplexes, and fourplexes<\/h3>\n
A duplex, triplex, or fourplex is a multifamily property with 2-4 units in a single building. Duplexes have two rental units, triplexes have three, and fourplexes have four.<\/p>\n
Many people prefer these properties because it allows them to grow their investment portfolios one property at a time, which minimizes risk. They are also ideal for those who are new to real estate investing. Instead of purchasing a large multifamily property with dozens of units, a new investor could purchase a duplex and then consider buying another one after gaining experience and confidence.<\/p>\n
An important disadvantage of this property type is that you may end up with multiple properties that are not close to each other. Driving from one property to another to address maintenance issues or show units to prospective tenants could be inconvenient.<\/p>\n
Do Your Research: Learn About the Neighborhoods and Choose a Location<\/h2>\n
Where you purchase multifamily units is one of the most important decisions you will make. Before you choose a property, it\u2019s important to ensure there is a high demand for rental housing in the area and that your investment will appreciate over time.<\/p>\n
First, it\u2019s important to consider local demographic data and the local economy. You can use online resources to find crime rates, school ratings, and the unemployment rate, which will help you determine whether the community you are considering is one you want to invest in.\u00a0<\/p>\n
Next, visiting the community you are considering to see it in person is a good idea. Check out the local amenities to ensure they are close to the property you are considering. Also, don\u2019t forget to explore the surrounding area to get a feel for it and to make sure it\u2019s family-friendly.<\/p>\n
When you visit a community, take the time to talk to some of the locals. Tell them you are considering buying property in the area and ask them if they like living there. They may give you important information you won\u2019t get by researching online or from other sources.<\/p>\n
Finally, you will also want to assess the local rental market by analyzing the rental demand, vacancy rates, and rent appreciation trends. It\u2019s also important to find out if there are any planned infrastructure projects or new business developments. A new distribution warehouse or factory employing many people could dramatically increase the demand for local rentals, allowing you to increase your rates and maximize your cap rate.<\/p>\n
How Do I Find a Good Multifamily Realtor?<\/h2>\n
Before buying a multifamily property, finding the right agent is important. The person you select will help you find the best investment property for your needs and ensure a smooth transaction. Multifamily agents are not difficult to find, and there are some simple strategies you can use to help you narrow your search.<\/p>\n
The first thing you can do is to ask for referrals from other real estate agents. Be sure they know you are specifically looking for someone specializing in multifamily properties. After getting some recommendations, you can check out any reviews and ratings they may have received from others on online real estate platforms.<\/p>\n
The next step is to talk to each of the agents you identified to make sure you are compatible and that they understand your investing goals. You could talk to them or arrange a short in-person meeting. Because you will be working closely with your agent, you want to make sure you are comfortable communicating with the person you select.<\/p>\n
What Characteristics to Look for in a Multifamily Realtor?<\/h2>\n
Any real estate agent you consider should be a multifamily housing expert. Before selecting an agent, there are three important characteristics to ensure you get someone who knows the market and your investing needs.<\/p>\n
They must be area hyper-local experts<\/h3>\n
When considering agents, ask them about their experience with multifamily investing, their track record of successful client transactions, and their knowledge of the local markets. A good agent can tell you which communities have the strongest rental demand, the best economies, and a positive long-term outlook.<\/p>\n
They need to be qualified experts in multifamily properties<\/h3>\n
It\u2019s also important to consider professional certifications before selecting an agent. Be sure to look for a multifamily investment property certification such as the Certified Commercial Investment Member (CCIM). This will help ensure that the agent you choose keeps up with industry changes and is committed to professional development.<\/p>\n
They have to be trustworthy enough to care about your investment criteria<\/h3>\n
Some agents will have more experience than others. Reviewing their track records and experience will help you avoid agents who are new to multifamily property investing, work as part-time agents, or are generalists who deal with commercial real estate in addition to other property types.<\/p>\n
FAQs<\/h2>\n
Before you select an agent, it\u2019s important to ask the right questions to determine if an agent has the experience, connections, and expertise you need.<\/p>\n
What questions should you ask your multifamily real estate agent?<\/h3>\n
Talking to several real estate agents specializing in the multifamily market is a great way to find someone easy to communicate with and knowledgeable about the local market. Here are some important questions to help you determine if you and an agent are a good fit.<\/p>\n