Is Multi-Family Rental Units a Good Investment

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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About Maxwell

MAXWELL@BOSTONLUXE.COM • CELL: (617) 543-7754 • OFFICE: (617) 267-4600 Maxwell Burke began his real estate career nearly 20 years ago doing appraisals with his father in Southern California and Northern Texas. He grew up in a family environment so oriented towards investment and real estate that to call his upbringing entrepreneurial would be a disservice. From his grandfather's multiple developments ranging from British Columbia down into Southern Mexico to his uncle's holdings in Portland, Oregon, Maxwell has been given a view not just of Boston real estate, but of American real estate. Maxwell and Drew Abysalh met in 2009 and increasingly consolidated their business models together culminating in their partnership in 2011. With over 300 real estate deals under his belt ranging from a standard rental to a $1.5 million condo conversion, Maxwell is a tremendous resource to help you realize your real estate dreams. Welcome to Boston Luxe - it's a pleasure to meet you. Google

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