Investing in a Florida apartment building, condo complex or another type of multifamily property may help you generate regular income and set yourself up well financially for retirement. While you may face upfront costs, your multifamily property may also serve as a legacy you may later leave behind for your loved ones.
Per Rocket Mortgage, investing in a duplex, apartment community other multi-unit residential property involves a serious commitment when it comes to maintenance and upkeep. However, if you feel you are able to make this commitment, investing in a multifamily property may lead to the following benefits.
1. Steady cashflow
Unlike stocks, a multifamily property provides a reliable, steady revenue stream. You receive a set amount in rent each month for the properties you own, and most residential leases last a year at a time.
2. Portfolio expansion
Investing in a multifamily property is yet another way to expand your portfolio and diversify your interests. How much actual effort you put into the day-to-day management of a multifamily property is up to you to some extent. While you have certain responsibilities, you also have the option of outsourcing most of them to a management company.
3. Lower costs of living
If you are an empty nester or someone otherwise looking to downsize, you may want to buy a multi-unit property and then live in one of your units yourself. You may then generate income through renting the other properties while keeping a close eye on your investment.
There are many considerations involved in purchasing a multifamily property. If done well and managed correctly, such an investment has the capacity to lead to significant benefits and returns.