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Why Multifamily Real Estate Investments?

Betsy Kuecker
·3 mins read

Multifamily real estate has always delivered potential for long-term profit. Low interest rates and demand for rentals nearly guarantee success, but some investors argue the possible payoff isn’t worth the little headaches multifamily housing can bring: collecting rent, maintaining many living spaces and the ripple effects of a downed economy.

Fannie Mae and Freddie Mac make it easier to buy multifamily housing. The Mortgage Bankers Association reported that 42% of multifamily loan capital came from these government-sponsored initiatives. If the money is on the table, it’s up to you, a real estate investor, to put it to use.

1. Multifamily Real Estate Offers Stability

Avoid the pitfalls of being an independent landlord and dip into multifamily real estate through a private real estate investment. Origin Investments provides private real estate investment opportunities through its IncomePlus Fund. The fund is designed to deliver stable, passive income and appreciation. It owns and operates multifamily properties and is supplemented by strategic debt investments.

Origin believes in investing in small, up-and-coming markets. It seeks to keep risk low for investors by targeting growing cities. Rent is still affordable for tenants, and vacancies remain low to reduce investment risk.

2. Multifamily Real Estate Tempers Risk

Risk also remains low in multifamily real estate because residential rental income is drawn from a range of tenants, while commercial real estate depends on just one or a few businesses for income. Loss of a multifamily rental income can be small and easily replaced, whereas commercial tenant loss could be devastating.

Don’t forget, residential rents rise with inflation. Residential rents rise with wages, but commercial rent is often set for years at a time. Origin works to stagger its leases. Many expire in the spring and summer when rent prices increase, due to demand.

3. Multifamily Real Estate Offers a Steady Revenue Source Even During a Downed Economy

Multifamily real estate is a steady revenue source even in the worst economic times. Origin strives to develop a deep understanding of the communities it invests in, as well as the details of the amenities tenants want.

Origin considers a multitude of factors that contribute to steady revenue:

  • Community-building events in common areas

  • Workout facilities

  • Quality of life add-ins, like green entertainment

  • Sustainable construction

Condo dwellers have started switching to condos and investors can capitalize on the potential for renters that replace former condo owners.
Learn More About Multifamily Real Estate with Origin Investments
Multifamily real estate is worth a second look. A multifamily unit that runs well and is well cared for can hold its value and thrive despite the ups and downs of the economy.

Start with Origin Investments, even if it’s your first foray into multifamily real estate. Learn more today.

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