As we see the market starting to slow down on the residential side of things, people start looking for ways to increase their investment income in other areas of real estate. As the U.S. is seeing some of the largest historical increases in residential tenants, we can all see why. One of the first questions to ask yourself as a current owner, is, would you purchase your property right now and consider it a GREAT investment, and there are no other alternatives that might give a better return? If your answer is anything except, “Absolutely!”, then it might be time to move on. But before we dive into that, let’s look as to why it is a phenomenal time to be a multi-family landlord.

For starters, since 2007 the number of rental households has grown by 25%. To give you an idea of how large that is, there are now well over 23.5 million people currently in the U.S. that earn income from rental properties. What is even more enticing is the fact that landlords typically earn close to 45% more income than those who don’t own any rental properties. That is a massive difference! With over 116 million renters in the U.S., you can see why it can be lucrative as a landlord. So, if you are considering becoming a landlord, I would personally say there is no better time than now.

Now if you are a current owner and you couldn’t answer the above question with an absolute yes, it might be time to move on to your next investment. A lot of owners tend to get very comfortable with their property but if you want to be a smart investor, you need to be on top of your game and know when it’s time move on. First, ask yourself how confident you are that you are currently netting the most on your investment property? Then, reach out to a broker to see how much similar investments are going for in your area and what their returns are. Chances are, you are going to be quite surprised! Lastly, start looking towards the future of your next investment. One thing we know for sure in Real Estate, is that you cannot get comfortable if you want to take advantage of all the advantages that investing in real estate offers… always be growing!

“ What if I am happy with my investment property?” I love this question! Reason being for one, hopefully that means that you do have a solid property that is worth holding on to, and for two, it means that you should be looking to purchase an additional investment property! Did you know that top investors in multi-family own at least 3 or more properties? The advantages of owning additional properties begin with diversification, but also by increasing your basis in the properties, you can take full advantage of the tax benefits investing in Real Estate offers, and therefore increase your bottom line. If your investments aren’t quite there yet, you may want to hire a professional broker to help you evaluate your current investment and be on the lookout for others as well.

If you are managing your own property, creating scale by owning multiple assets may bring your overall cost of ownership down, enough so that you can start using a professional property

management company and really step your game up to the next level. I know unfamiliarity can be scary sometimes, but trust me when I say this, IT IS WORTH IT!

As for anything else, that you might be curious about regarding your investment properties, reach out to your broker. Believe it of not, we love it when you call us! Remember, one of the best thing you can do, is reach out to a broker and to get all your unanswered questions and concerns handled, and best of all, it is usually without any obligation or cost to you.

For more information on how you might be able to reposition an asset, or general information on Commercial Real Estate, please reach out to: Travis@cbi-commercial.com

Credit: Travis O'neil Tapp