Residential real estate falls into two categories: single-family and multi-family. Owning multi-family real estate isn’t for the faint of heart, but the right property management team can help you get the most out of it. We’ve put together 5 great reasons to be a multi-unit landlord in Denver.
- Denver’s Hot Housing Market
- Grow Your Portfolio Faster
- Finance Simplicity
- Income Benefits
- You Don’t Have To Manage It Yourself
1. Denver’s Hot Housing Market
The biggest reason why real estate investors are interested in Denver is its growing population. The number of jobs and renters is increasing. Though the market slowed down because of COVID, things are picking up now that the city has opened up again.
2. Grow Your Portfolio Faster
With multiple units per address, multi-family real estate is the perfect fit for investors building an extensive portfolio. Buying a 10-unit apartment building takes far less time than purchasing ten single-family homes.
You may grow your portfolio two units at a time and still outpace the investor focused on single-family houses.
3. Finance Simplicity
You can purchase most duplexes with one straightforward loan. In that sense, buying a triplex isn’t any more difficult than buying a single-family home. Insurance, like financing, is also simple to get.
To make things even easier, many landlords start by owner-occupying their triplex. In other words, the landlord lives in one unit and rents out the rest. Owner-occupied properties often qualify for smaller down payments and lower interest rates.
4. Income Benefits
One of the reasons people become landlords is because of how easily rental properties generate revenue each month. A few duplexes can multiply your income for a minimal extra cost. In a strong market, units can turn over quickly, ensuring a steady cash flow every year.
5. You Don’t Have To Manage It Yourself
The money a few townhomes generate can leave more room in your budget to afford property management services. Our Denver property managers can show you how to optimize your investment property and take care of everything from leases to tenant screening to maintenance requests.
Connect With A Denver Property Manager
Multi-family opportunities can be an excellent option for novice investors dreaming of large portfolios, or experienced investors who want to add a new property type. If you’re looking in Denver and want local expertise, contact Cobalt Creek Property Management today to learn more about our services.
