Now is one of the best times of the past several decades to invest in a multi-family property, given the conditions in commercial real estate as well as the number of individuals who are considered to be of prime rental age. Even though great opportunities exist for investing in a multifamily property, it’s important to invest the smart way so that you achieve maximum return.

The Market Is Growing

There are approximately 85 million US citizens who were born in the time frame between 1977 in 1996. This millennial generation is a huge factor responsible for the greatly increased demand for apartments in this country, and that means you need to take into account that your multi-family property should be largely geared toward accommodating millennials.

New Apartment Complexes

There’s a growing number of people who prefer renting as opposed to purchasing a new home outright, and that’s why there are a number of new apartment complexes being constructed across the country. If you can find one of these new complexes which are a good fit for your financial strategy, this would be a good way to get in on the demand.

Class-B and Class-C apartments

There usually isn’t a lot of investment necessary for upgrades to older Class-B and Class-C apartment complexes. These dwellings can still attract a huge demographic of renters, especially millennials and working-class renters. Generally located in middle-income neighborhoods, this kind of apartment complexes can be virtually recession-proof.

Low Initial Cost, High Long-Term Return

Some older apartment complexes are overlooked and even under-valued by commercial real estate investors because there may be an investment necessary to re-purpose the property. A smart commercial real estate investor will recognize the opportunity presented by such dwellings because a fairly low investment now can achieve much greater returns down the road.

Got your eye on a nice multi-family property?

If you have a solid multi-family property in mind but lack the funding to execute the transaction, we may be able to provide financial assistance. Contact us at Integrity Financial Capital, so we can discuss with you some options for funding your next commercial real estate venture.