When considering a long-term investment strategy it’s important to understand the different types of real estate that can be profitable in today’s market. The multifamily housing industry is a great example of this. Properties in this sector offer great long-term potential. Some experienced investors such as Raphael Toledano consider it one of the most undervalued sectors in real estate.

If you’re looking to gain greater leverage over your real estate investment by purchasing properties that are already profitable, then multifamily might be the best option for you. Let’s take a look at some of the key benefits of investing in this sector.

Quality multifamily opportunities

Investing in quality multifamily properties presents you with a great range of opportunities. These properties may be single-family homes, townhouses, or even condos. The key to profitability in this sector is finding properties with a high quality of construction and a base level of occupied housing.

These properties will typically be located in areas with strong population growth, which can provide you with steady, high-quality income and a diversified portfolio of rental properties. These properties also tend to appreciate in value over time making them a great long-term investment.

Raphael Toledano owns more than 20 multi-family units in the East Village and Chelsea.

Great long-term potential

Many investors think of multifamily housing solely in terms of its short-term profitability. But, Raphael Toledano indicates that like most industries, the long-term outlook for this sector is very positive. The key to that outlook is the quality of construction and property condition. Properties in better condition will appreciate in value over time, and those in bad condition will lose value.

Raphael Toledano indicates that quality construction and high occupancy are key to profitability in this sector. In addition, multifamily rental properties have great potential for long-term gain.

Toledano is the founder and president of Brookhill Properties, one of the city’s leading real estate investment firms focusing on the top residential and retail buildings with the most high-quality finishes. 

 

Summary

Multifamily real estate is a great investment option when you’re willing to put up with a lower level of risk. The sector is extremely undervalued and offers plenty of long-term potential. The only downside to buying in is that you probably can’t sell your investment property anytime you want.

But, as with any real estate investment, you need to do your research and come up with a strategy that makes sense for your particular circumstances. In addition, you need to consider your time horizon when making your investment decision.

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