Are you looking for multi family homes for sale in the US housing market?
Multi family homes have proven to be lucrative real estate investments for many property investors. These rental properties consist of multiple separate housing units and are rented out to multiple tenants. Multi family investment properties are not only limited to apartment buildings; this is just the most common type. Duplexes, quadruplexes, and townhomes also qualify as multi family homes that property investors could consider for real estate investing purposes.
Investing in this type of investment properties is commonly advised for experienced real estate investors who are aiming at growing and diversifying their portfolio. If this is the case for you, then keep reading as we explore 5 places in the US housing market where you should search for multi family homes for sale! But first, let’s explain what makes these properties great investments in the real estate business.
Related: Best Type of Investment Property: Multi-Family Home!
Why You Should Invest in Multi Family Homes for Sale
Higher Rental Income / Positive Cash Flow
It goes without saying that the main goal of buying a rental property is to have a steady stream of income that’ll allow you to passively make money as a real estate investor. This is exactly what multi family properties provide. Seeing as these rental properties consist of multiple housing units, property investors simply have a higher monthly rental income because they’re collecting rent from more than one tenant. This further helps them cover their monthly rental expenses and, thus, generate a positive cash flow – which is something every real estate investor should aim for! This is especially true if you’re investing in an area with a high demand for multi family homes for sale as higher demand = higher rental rates.
Diverse Real Estate Investment Portfolio
Owning a rental property is a good way to make money in real estate. However, owning multiple rental properties is even better! As a matter of fact, owning a multi family investment property is also one of the best ways to build a diversified real estate investment portfolio. Thus, if you’re already investing in a single family home and thinking of growing your business, real estate experts advise you to look for multi family homes for sale instead of another single family home! These rental properties are more attractive to tenants, easier to manage since housing units are clustered together, and they reduce certain risks of real estate investing.
Related: Diversification and Real Estate Investing: 3 Ways to Diversify Your Portfolio
Multi Family Properties Have Fewer Risks
Speaking of reducing risks, multi family investment properties are known to be less risky than other types of real estate. How, you’re asking? Well, we’ve already mentioned that these rental properties generate higher rental income which, ultimately, protects you from generating negative cash flow. In addition, most residents can’t afford to buy a house of their own and opt for renting instead. Many prefer renting a unit instead of an entire house as it’s more affordable. As a result, there will always be demand for multi family homes for sale – especially in locations experiencing population and job growth!
Where Can You Find the Best Multi Family Homes for Sale?
Now that we’ve covered the main reasons to start investing in a multi family investment property, let’s walk you through the best places in the US housing market to start your search. The numbers provided below are projections estimated using Mashvisor’s rental property calculator. With this real estate investing tool, you can find, analyze, and compare rental properties in any city in the US housing market to determine which property to invest your money in and start generating profits! To learn more about our product, click here.
Related: How Can You Use a Rental Property Calculator to Buy the Best Investment Properties?
So, according to Mashvisor’s rental property calculator, a real estate investor should look for multi family homes for sale in:
#1 Lisbon, New York
- Median Property Price: $499,999
- Traditional Rental Income: $8,034
- Cash on Cash Return: 10.48%
- Cap Rate: 10.48%
Lisbon is a town in St. Lawrence County, New York. It’s definitely not cheap, but considering the extremely high rental income, no real estate investor would say no to a 10.48% return on investment!
Click here to find and analyze multi family homes for sale in Lisbon, NY!
#2 Goldens Bridge, New York
- Median Property Price: $871,268
- Traditional Rental Income: $6,740
- Cash on Cash Return: 5.75%
- Cap Rate: 5.75%
Goldens Bridge is located in Westchester County, New York. Although more expensive than Lisbon, property investors can still find cheaper and affordable properties in this town.
Click here to find and analyze multi family homes for sale in Goldens Bridge, NY!
#3 Eldorado Heights, Stuart, Florida
- Median Property Price: $134,900
- Traditional Rental Income: $1,295
- Cash on Cash Return: 4.95%
- Cap Rate: 4.95%
Eldorado Heights is a neighborhood in Stuart, Florida. This is definitely the most affordable location on our list. So, if you’re looking to invest in real estate with little money, this is the best place to consider. Not to mention, a 4.95% return on investment is another perk to take into account.
Click here to find and analyze multi family homes for sale in Eldorado Heights, Stuart!
#4 Parkside, Hollywood, Florida
- Median Property Price: $239,400
- Traditional Rental Income: $1,575
- Cash on Cash Return: 4.54%
- Cap Rate: 4.54%
Parkside is a popular neighborhood in Hollywood. Multi family homes you’ll find here include duplexes, condos, and apartment buildings which you can rent out for a good monthly rental income and return on investment.
Click here to find and analyze multi family homes for sale in Parkside, Hollywood!
#5 Mapleridge, Hollywood, Florida
- Median Property Price: $160,450
- Traditional Rental Income: $1,450
- Cash on Cash Return: 4.53%
- Cap Rate: 4.53%
Mapleridge is yet another affordable neighborhood in Hollywood. Looking further into for real estate investing opportunities here can be a good investment decision. The neighborhood is expected to grow, so property investors should take their chance and invest now for future appreciation!
Click here to find and analyze multi family homes for sale in Mapleridge, Hollywood!
Wherever you decide to invest, we’re here to help you find the best investment properties that are worth your time and money. Sign up to Mashvisor and you’ll get access to not only our rental property calculator but also the property finder tool which turns your search for multi family homes for sale from 3 months to 15 minutes! To start out your 14-day free trial with Mashvisor, click here.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.