Pittsburgh real estate professional Jason Cohen organized Jason Cohen Pittsburgh, a conceptual group offering real estate consulting services to a variety of clients. Over the course of his real estate career, he has developed experience with multifamily real estate investments.
Multifamily real estate enjoys a reputation as one of the best producing and most stable assets in all of real estate. Here are three reasons why.
Less maintenance: Many multifamily properties operate in conjunction with a homeowners’ association (HOA), which handles all maintenance on the exterior and in common spaces. This translates to fewer landlord responsibilities and reduced maintenance expenses.
Economies of scale: Single family homes require one property manager per home, while multifamily buildings can employ a single property manager for 40 or 50 units. Not only does this reduce costs associated with property management, but it also allows investors to keep a close eye on their properties.
Minimal risk profile: When a single family home becomes vacant, the owner experiences a 100 percent loss of rental income. When one unit in a 25-unit multifamily property becomes vacant, owners experience only a four percent loss in income. This allows for more consistent cash flow and significantly decreased risk.
Multifamily real estate enjoys a reputation as one of the best producing and most stable assets in all of real estate. Here are three reasons why.
Less maintenance: Many multifamily properties operate in conjunction with a homeowners’ association (HOA), which handles all maintenance on the exterior and in common spaces. This translates to fewer landlord responsibilities and reduced maintenance expenses.
Economies of scale: Single family homes require one property manager per home, while multifamily buildings can employ a single property manager for 40 or 50 units. Not only does this reduce costs associated with property management, but it also allows investors to keep a close eye on their properties.
Minimal risk profile: When a single family home becomes vacant, the owner experiences a 100 percent loss of rental income. When one unit in a 25-unit multifamily property becomes vacant, owners experience only a four percent loss in income. This allows for more consistent cash flow and significantly decreased risk.
