xhv8mzw7ge79waga35o97s2wbzpfr6 Should I Invest in Multifamily?

Should I Invest in Multifamily?


According to a post from the National Real Estate Investor, occupied U.S. rental units rose 20% above the prior 10-year period. Investors have flocked toward multifamily as a variety of economic factors have pushed more and more would-be buyers toward a life of renting.


One of the great things about multifamily rentals, is that the steady stream of cashflow adjusts annually along with inflation... and with good options available to outsource property management, investing has become easier than ever.


"The home ownership rate across all ages is near historic lows. For-sale housing may recover, but full return to the prior peak home ownership rate is not anticipated. Apartment living is generally a more manageable expense and flexible living arrangement than a single-family home. It is now cheaper to rent than buy in more than half of all counties nationwide." - nreionline.com


Millenials in particular have struggled to nudge their way into homeownership as student loan debt has now reached $1.5 trillion (and growing). The reality is that with a negative average net worth among most younger millenials, a decent credit score and debt-to-income ration has become hard to come buy.

"first-time buyers dropped from 39% of all sales down to 30%" - nrei

The more renters there are flooding the market (and staying there) the safer the investment. Cost of living being one of the most significant challenges cities face in the U.S. Currently, 24% of renter households in the country spend more than 50% of their annual income on housing. U.S. Dept of Housing and Urban Development categorizes anyone over 30% to be "cost-burdened" ... indicating that their likely to stay put as renters.


Similar Articles:


295 W Center St, Suite A

Provo, UT 84601

(801) 758-8970

(Brokered by RE/MAX Equity & partners)

CONTACT US

FIG DISCLAIMER: No investments are guaranteed to result in profits. Net operating income, cap rates, and internal rates of return are subject to fluctuation and may experience a wide range of change, including the potential for operating losses. Factors affecting investment returns include, without limitation, changes in interest rates, tenant vacancies and defaults, property management expenses, repair and maintenance costs, HOA expenses, litigation, insurance rates, and relative strength and weakness in the local and regional economy. Past performance is not a guarantee of future returns. FIG does not provide tax or legal advice, and none of the statements or information on our website or sales materials should be construed as tax or legal advice. All investors are encouraged to seek advice from their own tax and legal professionals. All estimated returns on investments in FIG projects are subject to change and may be significantly different from actual financial performance. FIG is a brand used for the purposes of marketing. FIG is not an actual company but is used to brand the investment strategy used by those marketed on this website. © 2020 FIG & RE/MAX Equity