Investing in residential real estate will continue to be one of the best ways to make money in the US housing market. Like every area of real estate, residential real estate is vast and diverse. The two most dominant forms of residential real estate are single family properties and, the topic of this blog, multi family properties. How can real estate investors find multi family homes for sale? Keep reading to find out!
Related: Your Guide to Investing in Single Family Homes vs. Multi Family Homes in 2019
Things to Consider When Searching for Multi Family Properties
There are several factors to consider when investing in any real estate property. A multi family investment property, in particular, is influenced by specific factors. The most essential of these is location– the most important influence in all of real estate. Multi family properties are a form of traditional, long-term real estate investing, and thus need to be located in highly-populated areas, such as in cities and suburbs. For example, in the Orlando real estate market, multi family homes are the most profitable investment- even more so than single family homes.
Property price is also significant, especially when determining rental income profitability, another key feature when looking for multi family homes for sale.
How can a real estate investor search for multi family properties while maximizing the ideal conditions for these three factors? We’ve got the answer!
The Best Way to Find Multi Family Homes for Sale
There are plenty of ways to find a multi family real estate investment. Manually searching and estimating the profitability of local properties, for instance, is a common method. However, this method, along with many others, is not the best.
By far, the best way to find multi family homes for sale is to use Mashvisor’s real estate investment tools. Mashvisor has four tools investors should use: a heatmap analysis tool, a property marketplace, an investment property calculator, and an investment property report. We’ll dive into each tool and the purposes they serve soon, but if you’re interested in learning more about all of Mashvisor’s investment tools, then click here!
Why Use Tools When Searching for Multi Family Homes for Sale?
You might be hesitant about using online real estate investment tools when searching for properties for sale. The simple reason why you should utilize tools is that their results are far more accurate, efficient, and optimal than those from manual means of finding properties. Mashvisor’s tools use traditional and predictive real estate analytics. The data obtained from Mashvisor’s tools are the most up-to-date investors can find. Mashvisor’s tools also save investors a lot of time and energy. You can find your ideal multi family property for sale with Mashvisor in a matter of minutes!
Related: Real Estate Data Analytics Is What You Need to Get Rich
Finding Multi Family Real Estate Listings
There are two parts to finding multi family homes for sale. The first piece of the puzzle is a multi family investment property search. This can be accomplished with two of Mashvisor’s tools: its heatmap analysis tool and property marketplace.
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Mashvisor’s Heatmap Analysis
As previously mentioned, the most important feature when searching for multi family real estate for sale is the property’s location. Mashvisor’s heatmap analysis tool is the perfect tool you need to analyze a property’s location. The heatmap conducts a neighborhood analysis and color-codes a location based on several property filters. These include:
- Listing price
- Traditional rental income
- Traditional cash on cash return (which is equal to cap rate here)
By choosing filters and metrics of interest, real estate investors can use the heatmap to pinpoint the ideal real estate investment location to search for multi family houses for sale. From there, you can set more filters like the multi family property type (such as a duplex or triplex) and many more in order to view listings in a top-performing neighborhood.
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Mashvisor’s Property Marketplace
Sometimes, real estate investors can make a huge bang for their buck by investing in foreclosed multi family investment properties. If you’re interested in investing in affordable multi family properties that are below market value, then you need to use Mashvisor’s Property Marketplace. The Mashvisor Property Marketplace provides investors with lists of foreclosed homes for sale, short sale properties for sale, and more in a selected area.
Analyzing Potential Multi Family Homes for Sale
Once a real estate investor has found a multi family real estate investment of interest, it must be analyzed. Once again, Mashvisor’s tools come to save the day. The multi family investment calculator and its investment property report break down a rental property’s expected performance in all the details an investor needs.
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Mashvisor’s Investment Property Calculator
Mashvisor’s multi family investment calculator computes all the metrics and values needed when deciding on buying multi family homes for sale. The calculator analyzes a property in terms of rental strategy, expenses, and financing, all influenced by the investor’s inputs.
When it comes to rental strategy, which is typically traditional in the case of multi family properties, the calculator estimates the property’s rental income, cash flow, return on investment, and occupancy rates. But, if you’re interested in analyzing the Airbnb potential, you can do that too! The expenses tab projects inspection fees, repairs, insurance payments, closing costs, and much more. The calculator also takes financing into account when estimating expenses and return on investment metrics.
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Mashvisor’s Investment Property Report
A vital part of any multi family real estate investment analysis is to understand both its quantitative and qualitative data and features. With Mashvisor’s investment property report, investors are able to do just that. The in-depth report allows investors to understand the profitability potential of multi family homes for sale. Mashvisor’s report also includes an overall investment score, called the Mashmeter. The Mashmeter is a score that grades a property’s overall investment capability. The Mashmeter is expressed as a percentage. The higher the percentage, the better the multi family homes for rent are for investment purposes.
Learn More: Exporting an Investment Property Report: All the Data in One Place
To sum up this blog: The best way to find multi family homes for sale is to use Mashvisor’s real estate investment tools:
- Mashvisor’s heatmap analysis will help you find the ideal property location.
- If you’re particularly interested in affordable properties, the Mashvisor Property Marketplace is all you need.
- Finally, to conduct a multi family real estate investment analysis, be sure to use Mashvisor’s investment property calculator and investment property report.
Now that you know how to find multi family homes for sale, why not put that knowledge into use? To start searching for multi family properties, click here to start your 14-day FREE trial with Mashvisor!