Why Multi-Unit Property Investing Is Heating Up

Orange County, CA Real Estate Podcast with Torey Severino

Have you ever considered investing in multi-family housing or apartments? Many investors are entering this market thanks to the stable returns it offers compared to the stock market.

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Should you consider investing in multi-family housing or apartment buildings?
We're starting to see a lot of our investors that own residential investment property consider selling condos and single-family homes to leverage their equity into multi-family or apartment buildings. A multi-family unit has one to four units, whereas anything with five or more units is considered commercial.
So why would these investors do this if they've created such great equity already?
Well, the market is changing, and demographics are changing, too. People are renting longer these days, so we're starting to see an opportunity for a good stream of income from a multi-unit rental.

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These investments don't have the volatility of the stock market.

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If a single-family or condo rental home goes vacant, you still have expenses coming out of your pocket. With a multi-family rental property, you have multiple streams of income, which is a great way to build passive wealth and build retirement income.
You'll also build your net worth over time.
These properties are very desirable, but they can be tricky to find. If you can't buy in California in the area you want or the price you want, I can absolutely refer you to an agent in my network of top agents across the country in areas where there are great investment opportunities.
Secondly, there are a lot of tax and financial advantages. I'm no CPA or Financial Planner, but I've seen clients build phenomenal wealth over their career through property investments and apartments. With a lot of volatility in the stock market, many investors are leaning toward the real estate investment market. They know they can get a cap rate between 4% and 12% (the money you'll make after all the expenses) and realize that this is a lot better than they could do in the stock market or a bank.
We don't see the volatility because it's a long-term scenario.
If you're interested in learning more about investing in multi-family properties or apartments, give me a call or send me an email. Let's get the conversation started soon.