In this industry, property is bought and sold. This industry is tremendously lucrative to be in. Many people are making fortunes in this industry. Within it, there are many types of investments that you can make. Read on to discover these types.
Multifamily residential real estate
This is a type of real estate where the companies and agents in the industry invest in buying or building multifamily homes. Examples of these are flats. From an income point of view, this type of real estate investment is very lucrative. This is because the multifamily rental properties always have a steady stream of income every month. Moreover, if your renting rates are competitive then your multifamily residential units will always be full of tenants. This type of real estate is a good one to invest in because it is stable. If one tenant leaves your block of flats, they have very little effect on your bottom line. In this type of property ownership, the cost of maintaining the Albany, NY real estate investments is very low.
Single family residential property ownership
This is similar to multifamily residential real estate. In this type however, each home is occupied by a single family. Each home belongs to one family. As such, for a real estate investor to earn large amounts of profit from this type of property ownership, they must own very many single family homes and receive rent payments from them. Single family homes are described as having ownership through a condominium style. One of the unique characteristics of this type of home is that the land that belongs to the investor is only that which supports the house itself. The extra land around it also known as the yard is co-owned with the neighbors. Unlike blocks of flats, single family homes each have their own sewerage and plumbing systems.
Single family or multifamily real estate, which is more profitable?
Many investors experience a dilemma when choosing between these two types of property ownership. Each has its advantages and disadvantages. The single family houses have a high amount of cash flow per unit. When you buy these units and rent them out, they can recoup their cost over time and give you a 20% profit. The multifamily units such as blocks of flats have the advantage of being very scalable. You can purchase 50 housing units all under one roof in one transaction. If you keep up this pace, your real estate portfolio will grow and expand exponentially. All in all, the choice of Albany, NY real estate property ownership depends on the investment style of the real estate investor.