It can be difficult to get your head around the concept of investing in a multifamily property. After all, apartments aren’t often considered a potential source of long-term returns. Fortunately, not everyone sees it that way. In fact, one of the biggest challenges facing the multifamily industry right now is that, with so many properties being built, there’s a significant shortage of tenants as well as a lack of demand.

That’s why, instead of shying away from this niche segment of the market, savvy investors, such as Raphael Toledano, are seeing it as a way of both increasing their ROI and helping to keep properties affordable for future tenants. In this blog post, Toledano will take a look at what makes investing in multifamily rentals so lucrative, as well as the specific factors you should keep in mind when considering an offer from a potential landlord.

 

What is Multifamily Property Investing?

Multifamily investing is the process of purchasing, managing, and renting out multiple separate properties. In other words, you’re not just buying a single apartment building and hoping that it will conduct you well as a landlord. Toledano, who through his company owns a 16-building multifamily portfolio in the East Village, indicates that if you have a good idea of what you’re doing and have the necessary resources to put into the situation, you can become a full-fledged property manager.

Multifamily properties are a great way for investors to get into the property management game without spending a large amount of money. If you have the ability to look at a large number of properties at once and can make a profitable deal on the one that works best for you, then it makes sense to take advantage of this opportunity.

 

Why You Should Look into Multifamily Investing?

Although it can be intimidating to take the plunge into the multifamily industry, you should do it. The demand for apartments is weak, and so there’s a shortage of both tenants and landlords. In Toledano’s opinion, the good news is that, if you can manage to buy a property that’s in need of repairs and re-lease it at a lower rent, you’ll be able to turn a profit in no time at all.

Furthermore, real estate investor Toledano shares that there are several benefits to owning more than one property. For example, you can diversify your portfolio, cutting your risk and safeguarding your assets at the same time.

In addition to this, operating multiple properties can help your business reach a broader range of people. If you own a single property, you’re only ever going to rent to a certain type of individual—whether they’re looking for an affordable place to live or are looking to start a new career.

However, Raphael Toledano indicates that with a multifamily portfolio, you’ll have a much larger pool from which to choose. That way, if a particular demographic is in need of affordable housing, you’ll be able to provide it to them without having to look elsewhere.

 

Conclusion

Multifamily investing makes sense for many different reasons, and the fact that there’s a shortage of both tenants and landlords means that it’s not a niche market. Rather, it’s an industry that’s growing extremely quickly, and if you’re able to take advantage of this fact, you can make a lot of money.

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