When investing in a rental property, you should be looking at the Effective Gross Income (EGI), which is an essential element in determining the value of a property. EGI is income generated by a property including base rent and miscellaneous income like laundry, pet fees, less vacancy, and collection losses.
You can sift through multiple online forums and websites, and even experts and everyone will have a different opinion. However, this article can help you choose which one to go for. Here, we list all the advantages each property possesses:
If you wanted to grow your real estate portfolio by five units, you would have to buy five separate houses in case of single-family rentals. Whereas with multi-family rental properties, you can buy a 5 unit apartment building and that’s that! Even the hassle of acquiring a 5 unit apartment building will be a lot less compared to purchasing five different single-family houses.
You have benefits, with it comes to economies of scale. Since all the units are under one roof in a multi-family apartment, fixing that roof benefits all the houses. Also, there are advantages like you need only one insurance policy; property inspections require driving to only one destination, etc.