Multi Family homes for sale have been a consistent opportunity in Las Vegas and Henderson due to the large service and construction industries. We always recommend consulting with a licensed real estate agent and being guided thru the process of reviewing any existing leases with tenants. We specialize in multi family and investment real estate.
Multi Family Units
What Is a Multi Family Home?
A multi family unit is a property that consists of multiple separate housing units designed for residential purposes. A multi family unit can be a building containing several apartments or unit, or even a complex containing of several buildings. Either way, this type of property features multiple units aligned side by side or one on top of each other, similarly to apartment buildings with several floors. The most common forms of multi family residential properties are apartment buildings and condominium complexes.
However, keep in mind that there is a difference between the two, since condominiums are units owned by individual residents, whereas apartments are rented from the owner of the building.Before we get into further details regarding multi family units, you should keep in mind that these residential properties are often called multi dwelling units or MDU for short. Depending on how many units a multi dwelling contains, it can be classified as a duplex, triplex, or an apartment building. Whether you’re looking to move into a multi family unit or invest in one for business purposes, there are many reasons why these properties are so beneficial.
If you decide to live in your multi dwelling building and rent out the empty units, you will be able to pay off the mortgage much more easily, since you will be receiving income from monthly rent. You can also write off the expenses related to your rental income and thus take advantage of the tax benefits that come along with owning and renting multi family units. Besides, owning one of these properties is a great option for people who want to stay close to their family members. Adult children and elders can move into one of the available units and still stay close to you while having their own space and privacy.
Things to Keep in Mind When Investing in a
Las Vegas Multi Family Unit
Before we get into the numerous benefits of investing in a multi family unit, it is important to remind you of all the things you should keep in mind when planning your investment. Once you have your mind set on a specific multi family unit, you have to take into consideration several factors that might affect your success as a landlord and investor. For starters, make sure to check whether the property is move-in ready or it requires some work to be done first. Investing into fixer uppers can sometimes be a jackpot if you land a favorable price. However, in some cases, you might end up stuck with a property that is way too expensive to renovate, which means you will lose money on your investment.
If you want to take a risk and invest in a fixer upper, make sure to bring professionals to the site in order to correctly estimate renovation costs. Calculate whether those costs fit into your budget and don’t forget to make room for additional unexpected expenses that can often burden your bank account. On the other hand, if you prefer investing in a move-in ready dwelling, make sure to check whether the structure is solid and reliable, as well as whether all systems are fully functional. Keep in mind that the property needs to meet specific safety standards before you can move into it or rent it out.
Benefits of Investing in a Multi Family Unit
If you are ready to make the next big move as an investor, it is time to start focusing on multi family units rather than single family homes. There are numerous benefits that make multi family unit investments far more convenient and profitable than investing into a single family home. Here is a list of reasons why you should consider this move!
#1 It is a scalable investment
Multi family units can be turned into functional and thriving business with much less time and energy used along the way. It takes less time to buy one multi family dwelling with ten units compared to buying ten single family homes. This way, you will be making income from ten rents without having to visit ten different locations and investigate each property separately.
#2 Have room to focus on your business
When investing in a multi family dwelling, you need to visit one place, negotiate on one price, and close one deal. The time and energy you save on the investment and purchase processes will allow you to focus on other aspects of your business in order to increase growth and profitability.
#3 Easier management
It is far easier to take care of management when all ten of your tenants are situated in one location rather than scattered all over town. This way you don’t have to travel to ten different places to handle management issues or visit your tenants.
#4 Less maintenance expenses
Another great benefit of investing in a multi family unit is the fact that you will save a lot of money on maintenance as compared to investing in single family homes. For example, in a multi dwelling property, all your tenants are situated under one roof, which means there is only one roof to maintain. If you were to own ten single family homes instead, you would be dealing with ten roofs and enormous expenses.
#5 Pay Off the Mortgage Easily
Last but not least, renting out several units within the building will allow you to collect enough income to cover your mortgage expenses more easily. Multi family units are far more profitable than single family homes because there is less risk that you won’t have enough income to cover the mortgage. If your single family home is not rented, you will have to pay mortgage on your own. However, if three out of ten of your multi family dwelling units are not rented, you will still have seven tenants providing passive income to cover the expenses.
Multi Family Homes Conclusion
If you are ready to move to multi family units and make the next big investment in your career, we recommend you to look for a well-structured property that doesn’t require much renovation. There are many benefits that come along with investing in multi family units so make sure to consider all the advantages that you will get if you make the right move.
We specialize in Multi Family Units in Las Vegas for Sale