Multifamily investment has become the best of two worlds!
By: Stacey Harkness, Account Executive of Investment Sales
Real estate can be categorized into two groups. Most people are familiar with the residential real estate market. Owning a home is a dream to which many Americans aspire to obtain. When considering the purchase of a new residence, the industry standard suggests a person’s home value should be about 20 – 30% of their net worth.
Another form of real estate which is not as familiar, is the commercial sector.
This group of properties generate income for the owner. Anyone can purchase commercial real estate, as there is a wide variety of properties available at different price points.
Many of the world’s wealthiest people are involved in real estate as an occupation or choose to do so as an additional, reliable source of passive income.
While the single-family home is the most common form of residential properties, the multifamily investment has become the best of two worlds as it falls into both types of real estate. Whether life is in the big city or the suburbs, acquiring this type of investment provides multiple ways to produce income.
Owners typically utilize their multifamily properties in three ways. One option is to solely rent out the property to tenants and collect monthly passive income. The second option is for the owner to live in the establishment while renting out the remaining units. This scenario provides the landlord with an opportunity to pay little to no personal mortgage expenses, considering the tenants’ rental rates covered all the property’s monthly debt. Thirdly, some owners have chosen to purchase a property, retain ownership of a portion of it, while selling off fractions of the remaining units/lots over a period of time. This situation generates profit annually in addition to the monthly income from tenants.
In summary, the way in which an owner chooses to utilize his/her multifamily investment is uniquely his or her own. Each option provides significant income to the asset holder thus making the multifamily investment an ideal choice in both residential and commercial markets.
Stacey Harkness, Account Executive of Investment Sales
The TCO ONE REIT, purchases multi-family properties with the intention to bring consistent passive income back to you, the investor. This is your opportunity to invest in institutional quality multi-family properties at a fraction of the cost. For $25k dollars you get a fractional ownership in multi-family property where you earn passive income. This investment structure offers you the ability to invest in something bigger than what you could do individually.
Read more articles about Commercial Real Estate Investing on our company blog!
Comments