Saturday, September 8, 2012

Is Multi-Family Rental Units a Good Investment - Boston Luxe Real ...

Just when it looked like the real estate market was starting to bud out again, it reversed itself and is again struggling to keep it?s head above water.? Widespread foreclosures and continuing unemployment is certainly not helping any. It appears that more and more people are renting which brings up the question: Is multi-family rental units a good investment, especially with the record low interest rates that are available.

The experts are emphasizing some caution if considering rental property investment.
Consider:

  • ?Know the area well including the crime stats and other competitive developments that might lure renters. Talk to a Boston Luxe Realtor and do a complete investment analysis before making any commitment to purchase.
  • ?Consider multi unit rentals rather than a single family home for rental investments. More than one rent check coming in each month? is better than just a single check because if that one renter is late or the unit is vacant you could be in trouble.
  • Make sure that your rental income is higher that your mortgage payments and other expenses on the property, and try to add a buffer of 15-20% to take care of repairs, vacancies etc.
  • Make sure you have sufficient insurance coverage for tenant damage, repairs, fires, etc. Do not try to get away with no coverage..this is a major mistake many landlords try to get away with.
  • Make sure your rentals are in compliance with local and state laws before renting any units out. Talk to your local Realtor for help with this. (IE: is there lead paint on the walls, any asbestos, or mold?)
  • ?Use a lease or rental agreement that is compliant with your state laws. Talk to a Realtor on this, they can be very helpful and they know the real estate laws involving sales and rentals.
  • Get a professional manager or management company to handle the day to day operations of your rentals so you aren?t called in the middle of the night to fix a leaky pipe or toilet or?
  • If possible, join a professional apartment association. There is much support resources available and plenty of advice from local Realtors and builders who also own apartments and other rentals.

Yes owning rentals can be a good thing if you can find the right ones at the right price and then rent the units to the right people.

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Is Multi-Family Rental Units a Good Investment, 10.0 out of 10 based on 1 rating
This entry was posted in Boston Luxury Apartments, Market Analysis and tagged boston apartments, real estate by Maxwell. Bookmark the permalink.

Source: http://www.bostonluxe.com/blog/2012/09/07/is-multi-family-rental-units-a-good-investment/

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