For investors, purchasing, renovating, and flipping commercial real estate property is one of the easiest ways to generate revenue. Majority of the fix-and-flip professionals are now investing in multi-unit dwellings as the demands for a rental unit is rising day by day. Since renovating a multifamily property may require more substantial funding, it can be beneficial when executed correctly. It is true that multifamily fix and flip can be different from the single-family residence. Since the search for the right buyer differs than with a single-family home, it might not be necessarily challenging. In case you are also looking for Multi-Family Fix and Flip Loans then contact us now to get the immediate funding at the lower interest rate.

What is a Multifamily Investment?

Multifamily properties are also known as multiple-building units. It contains more than one housing unit in a single building or group of buildings within a single complex. Designs like duplexes, triplexes and quadplexes etc. comes under the category of multifamily properties. This is more like semi-detached property with two separate homes on a single piece of land. As the cost of renting continues to rise, property investors are recognizing that they can increase the profit by investing in multifamily units. This indicates that you have a great chance to succeed in fix-and-flipping such property.

Key Benefits of Investing in Multi-Unit Dwellings Over Single-Family:

Availability of Potential Buyers:

Potential buyers of a multifamily property include both homeowners and investors. The delay in selling multifamily property creates less impact on multi-unit buildings because of the rent that comes from existing tenants. Majority of the time, the rents from a few units are sufficient to cover expenses. The cash flow from the remaining part of the building is something called pure profit.

Positive Cash-Flow:

Multi-unit properties generate steady cash flow as rents from several units rather than just one group. Also, cash flow is often more predictable due to multiple tenants paying rent. Multifamily apartments are usually sold with a current tenant base that gives produces positive income from day one. A small rent increase of one unit will significantly enhance cash flow as the increased amount is multiplied across many units.

Less Competition:

fix and flip investors often face challenges and compete with other buyers for closing the property. Additionally, if you are a newbie to this filed, then closing a fix and flip deal can be more difficult. In result, these newbie or inexperience people end up paying more. The case is different for multifamily repair and flips investors as they are generally professional buyers who use sophisticated tools to determine the right price.

Benefits from Tax:

Keeping tenants in some units during recovery  allow holding the property for more than a year and qualifying profits from the sale as a long-haul capital gain and avoid the typical homeowner deduction.

Bigger Pay-Off:

Since a single-family homebuyer won’t pay more as rents are rising a multi-unit building buyer will pay a higher purchase price as he will consider the rent increase factor.

In case you are also looking for a multifamily fix, and flip loans then contact Hard Money Loans. We are amongst the reliable lender of Fix and Flip Loans in Texas. For more information, do reach us at +1 (310) 666-8884 or carlo@hardmoneyloans.com .