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The Beauty of Leverage in Multifamily Investing

Using Leverage to Increase Your ROI

When deciding how to invest your hard-earned money, multifamily investments continue to be a source of above-average returns. Data from a recent study forecasts a healthy economy and even more lifetime renters as interest rates rise and the housing market shifts.

Some refer to profits from real estate investments as “mailbox money”—checks that show up in your mailbox from your savvy real estate investments. But how can you increase these returns? The answer is simple—so […]

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Location and Loan Rates: A Critical Intersection in Multifamily Investing

Why Location, Location, Location Begs Repeating in Multifamily Investing

Location: a word so nice we say it thrice. The saying Location, location, location is oft repeated in real estate—for good reason. As the money managing site The Balance puts it, “You can buy the right home in the wrong location. You can change the structure, remodel it or alter the home’s layout but, ordinarily, you cannot move it. It’s attached to the land.”

When buying a single-family home, you may think […]

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Which Renovations Offer the Best ROI for Multi-Unit Properties?

There is a tried and true philosophy in residential real estate that declares, it’s best to target the worst home in the nicest neighborhood, and add value through renovations.  Logic begs the question then, does this same idea apply to multifamily housing?  Those looking for a strong, immediate ROI on their real estate investments may do well to look for older properties in desirable areas that may simply need upgrades or uncomplicated repairs.  Through a quick, multifamily property flip, […]

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How To Figure Out What Your Multifamily Property Is Worth

Have you ever wondered how to value your commercial multifamily property? Here’s the good news: it’s relatively easy to calculate. As long as you have good operating data on your property, you have all you need.

The value of commercial multifamily real estate (5+ units) is largely derived from an income approach appraisal based on a simple formula for valuing commercial real estate:

Current Market Value = Capitalization Rate / Net Operating Income

Your operating data should include annual NOI (Net Operating […]