The multi-family house as an investment

There are various investment options - the multi-family house is one of the safe and well calculable. In this article, you will learn what to look out for in order to be successful in the long term with the investment apartment building.

High acquisition costs

In contrast to other forms of investment, the initial investment in an apartment building is usually high. Accordingly, it takes a long time until the acquisition costs are balanced by the rents and you are more or less in the plus. If you plan to rent the apartment building as a retirement plan, you should purchase it long before you retire.

Not without risk

Anyone who thinks the apartment building is a completely risk-free investment option is wrong. Although rental income is less dependent on the current economic situation than equities, bonds or similar investments, it can theoretically collapse at any time. Because the economic situation of your tenants can deteriorate, for example because of sudden unemployment, so that your rents partially fail or are only paid very late.

The multi-family house as an investment: building

Therefore, it is safer to own a multiple dwelling with several but smaller dwellings: If your total revenue from rents is divided among as many tenants as possible, a single loss is much easier to handle than a few large dwellings.

Running costs

If you own an apartment building as an investment, you should always make money for possible investments such as renovation or renovation. As a rule, the landlord is responsible for the maintenance of the building, unless otherwise stipulated in the rental agreement.

As you can see, with a multi-family house as an investment, you have chosen a secure, somewhat independent but also not quite cheap option. If you do not like to speculate, but rely on calculable risks and costs, but it is a first-class variant of the investment, which has also in economic crises and can hold in case of doubt "over water".

Tips & Tricks

Find out from other landlords or the Internet about experiences that affect the apartment building with the purpose of the investment. So you not only get tips on how to plan more economically, but also how to deal with running costs and risks.

Video Board: Multi Family Real Estate Investing For Beginners