The Sunshine State has the greatest number of cities on Forbes’ Best Buy list in the country: Orlando, Fort Lauderdale, Cape Coral, Miami, Jacksonville, West Palm Beach and Tampa. But smart multifamily investments in Florida aren’t limited to this short list; real estate values are increasing at a rate of 9% to 14% in ALL of the cities in Florida. That means, even if your multifamily units were empty, you’d still be making money!
 
Think of the all the people who have become extremely wealthy through real estate and you’ll realize that they did so by owning multi-units. When it comes to residential real estate, there are two main types of properties investments: single-family and multifamily units— including duplexes, condominiums, apartments, retirement complexes and others. Real Pro understands the advantages of multifamily investments and can help you find the best real estate deals in Florida.
 
What makes multifamily investments so great?
 
1) Reliable income. A vacant single-family home means zero income. However, barring a major disaster, a multifamily investment property in Florida will rarely sit completely unoccupied… even during high turnover seasons. This gives you the leeway to repair or renovate vacant units, and the time you’ll need to find quality tenants.
 
2) High demand. There is a large base of tenants looking for multifamily homes. A recent study by the National Multifamily Housing Council shows only one-third of rental properties are single-family homes and 63 percent are multifamily. While a single-family home investment also increases in value and creates a positive cash flow, it is only one source of income. A multifamily investment property in Florida can be as small as a duplex and as large as 1000+ units. Real Pro clients are usually new investors who have as little as $25,000 for a down payment; as such, we focus on small to medium multifamily properties.
 
3) Better value. The price per unit will be much lower than it would be if you dealt exclusively in single-family properties. Yes, the price tag can be daunting, but the return on investment is second to none. In the overcrowded single-family rental market, multifamily properties are a blessing in disguise. Before you discount that downtown high-rise or the contemporary duplex, consider the possibility of a generous ROI. Real Pro knows that multifamily investment properties in Florida might just be the investment of a lifetime.
 
4) Lower maintenance expenses per unit. Because of the shared walls, yard, plumbing and electrical systems, etc… maintenance expenses are greatly reduced. For example, an internal plumbing problem for a single-family home can be just as expensive to fix as one in a multi-family property. Everything from landscaping to the cost of electrical supplies will be less expensive per unit. Real Pro has the connections you need to attain and maintain your multifamily investment property in Florida.
 
5) Lower management fees. It’s easier to manage one building, or hire a property manager for a single building, than to tend to several separate single-family homes. A property manager is typically paid a percentage of the monthly income the property generates, which means they are motivated to find and screen tenants, collect rent payments, handle evictions for non-payment and maintain the property to attract new tenants. 72% of multifamily investment properties in Florida have 10 units or more; it’s easier to manage contractors, bills, taxes, etc. for one multifamily structure than ten single family homes.
 
6) Easier financing. It might seem as though securing a loan for a single-family property would be easier than trying to get money for a million dollar complex, but the truth is a multi-family property is more likely to be approved for a bank loan than the average home. That’s because multifamily investments in Florida consistently create a strong cash flow month after month. This remains the case even if a property has a handful of vacancies or a couple of tenants who are late with their rent payments.
 
If those reasons aren’t enough for you think about purchasing a multifamily investment property in Florida through Real Pro, consider this highlight from a 2017 Freddie Mac Outlook report: “Florida will see strong rent growth in 2017 because increased demand outpaces supply, allowing landlords to raise rents at a quick pace. As Florida emerges from the Great Recession, they have added jobs and experienced population growth but have not had as much of an increase in multifamily construction as many other areas have had. Vacancies are expected to decrease in 2017 as strong demand brought on by a growing job market and relatively little new supply will push vacancies down and rents up.”
 
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