In Brad Zackson’s view, investing in multifamily real estate can be thrilling and profitable, but several investments result from poor decisions. He is the co-founder and director of development at Dynamic Star, a full-service real estate firm. Sometimes, property investment will only work out for reasons beyond one’s control. However, Brad Zackson should always research the market thoroughly and evaluate the property objectively, even if things don’t work out.
It should also be noted, according to Brad Zackson, that determines how the property is to be managed is also one of the most critical factors in choosing the right property. When investing in multifamily real estate, one of the biggest advantages is that rental income will continue to generate a reliable stream of income every month. Unlike single-family homes, multifamily properties have more than one tenant paying rent, so you can still make money on other units even if there is one vacancy.
However, before investing in multifamily properties, please do your homework and formulate a strategy for investing in them. Many different areas within each city vary significantly. Investors should be aware of the differences among areas within a city, and they need to narrow down their focus.
Keeping the market research focused will help prevent surprises and help you better understand the value of a property. Additionally, you will better understand the vacancy rates and rental prices of a property, which will help you determine the true value of a property. It will be important to know, for instance, if any developments are coming up in a certain area that may have a significant impact on the investment property if there are.
Jackson believes the best way to make smarter investments is to take a systematic approach and design criteria for evaluating properties. New investors risk falling in love with a particular property, overlooking its faults, when applying these criteria to all properties they may be interested in buying. Using these criteria will allow investors to make an objective decision when purchasing.