Nowadays, whenever you talk about investing, you’ll see most direction points to how profitable real estate is. There’s lots of ways to get started so don’t fooled into thinking that only single-family homes can bring you extra money. Consider investing in multi family houses and you will see how beneficial it can be for you. Listed below are some of reasons why you should think about multi family households:
1.Lower Risk Than Single Family Homes. Investing in multi family houses give you the same chance to own a property and risks are lower compared to single family homes. If you’ll lose one tenant, you can still obtain
monthly payment from other tenants. Unlike in single family homes, when the tenant will skip the payment this will leave you responsible in finding other means to cope with your mortgage until you will have it leased again.
2.Continuous Monthly Income. Investing in multi family houses have the potential to bring you more income than relying on just one tenant from single family residence.
3.Fierce Competition. Most investors are after single family homes and hold on to the property in hopes of value appreciation. But you’ll get stuck until you will be ready to sell the house and a strain in your cash flow. Therefore you shouldn’t rely only on appreciation for your income. If you’d like to have an immediate and positive cash flow after purchasing the house, try investing in multi family houses.
4.Less Maintenance. They say there’s more cash if you have multiple properties. But how are you affected if you have many single family homes to take care of? This will shake up your finances if you’ll have to maintain each and every properties when you can do it all at one place. You’ll simply have to manage a real estate property at a single location and yes, still generate more from this without having to get and maintain as many properties.
5.Put The property Up For Sale. Most investors still have every intention to sell despite the fact that multi family property appreciates only for a few percent. However, there are few buyers around but you make more money when you sell than a smaller property that increases by similar margin.
6.Property Management. You have an option to seek the services of management companies to address your property needs. They’re going to deal with the repair and maintenance; promote unoccupied units, interview renters and eviction.
However, if you can’t afford a property management company and you want to make an attempt to take care of your own property, you will need to familiarize yourself on some court proceedings especially on legal action against tenants if they default the rental payment and on how the eviction notice works. You may also consult an attorney regarding the contract’s content for the tenant just so you’ve got something for them to sign on thus giving you a proof later if a tenant breach the contract. Don’t cut them some slack and show the eviction notice should they go against the contract. Business will have to keep on rolling which means you can’t allow delays since you also have your own payments to be concerned about. So you’ve got to be cautious on whom you are taking in and make them comply with the rules if you would like everything to run smoothly.
Don’t be afraid to take a big step if one is indicated; you can’t cross a chasm in two small jumps ~ David Lloyd George.
In this section a breakdown is made of different houses in order to determine a perceptual analysis of typical costing elements the cost of completed dwellings. Obviously the costs will vary depending on circumstances. Therefore the cost per square meters is irrelevant and will not be used. The dates of the building contracts vary, going as far back as 2006; there is no limit to the number of building site locations, etc. The variance in the different contracts should however have no or little effect on the perceptual values of the elements in the individual houses.
Traditionally bills of quantities for building contracts, also those for houses, are divided into the following trades, where applicable, for tendering purposes:
Preliminary and General
Shuttering and Shoring
Concrete Formwork and Reinforcement
Masonry (Stone. Marble and Slate)
Carpenter and Joiner
Plastic Lining, etc
Plasterer and Paver
Plumber and Drain Layer
There is no point in discussing the traditional arrangement in further detail for the purpose of house building.
For the purpose of determining the element costs, the priced bill of quantities of twelve completed houses were kindly loaned to us for analyzing. Due to the confidentiality of these documents, which in fact, form part of the contract documents of the different contractors. Also, due to the fact that the documents studied comprised approximately 2600 pages, copies are not included in this study. The background of these contracts is shortly mentioned here:
In most of the houses in the different contracts have the same type of out buildings and the site works measured as a unit. These items were then divided by the number of houses in order to determine a price for an individual house.
The Preliminary and General items in the Bill of Quantities is proportionally added to the different elements. In some contracts for example separate provision was made for the Foreman’s salary, Insurance Policies, Site storage sheds, etc.