Investing is one of the most common ways to make a passive income, i.e. an income where you do not have to go to a job, but the money will come to you via other means.
Investing in a multifamily property such as an apartment building or condo is one way to do this. Though there are certain downsides like the maintenance and upfront costs, there are plenty of benefits to reap as well.
A reliable source of income
Rocket Mortgage discusses some of the benefits associated with a multifamily property. First, if you desire to add to your portfolio and expand your interests, this is a great way to do it. You have somewhat of a choice when it comes to the amount of day-to-day management you invest in the property. You can also outsource most of your work to management companies, which ultimately leaves very little for you to have to worry about.
You have a steady cash flow, too. With stocks, the money can come and go. There is always the risk of the stock market tanking, or your particular stocks plummeting in value, too. With a multifamily property, you get a reliable and steady stream of revenue with rent coming in monthly and most contracts lasting a year.
Lowering your cost of living
On top of that, you have lower costs of living. If you decide to downsize or are a recent empty nester, you can buy a multifamily unit and rent the rest out, living in one unit alone. This lets you generate income and keep an eye on the property up close and personal. It is a great potential option for future multi-property owners.