1. Reasons Why Investors Choose Apartment & Multifamily Investing
Tens of thousands of single family residential rental home investors enjoy all of the benefits of this type of real estate investing. The cash flows coupled with tax advantages and appreciation in value over time are the main components. But, many of them would probably sell those homes and move to apartment & multifamily investing if they fully understood the advantages of economy of scale. Apartment financing is also handled differently. Learn how in this series.
2. Apartment & Multifamily Investing - Vacancy and Credit Losses
While cash flow in apartment & multifamily investing is made up of both income and expense side financial items, vacancy and credit losses impact the income side before there's any opportunity to enhance cash flow through expense items control. Learn here about vacancy and credit losses from marketing and advertising influences through property management activities to control them.
3. Cash Flow in Apartment & Multifamily Investing
Owning a large number of rental units in one location usually generates greater cash flow per unit than an investor will realize through multiple residential single family rental units spread around the area. Learn here about economy of scale, and how to use it in several marketing and management activities to cut costs per unit and thus increase cash flow per unit.
4. Ratios Used for Apartment & Multifamily Investing Financing Decisions
Using the Break-even Ratio and DSCR (Debt Service Coverage Ratio), lenders can take a snapshot of the performance and cash flow of an apartment or multifamily project, and the size of a mortgage that this cash flow can support. Learn in this article about the different way in which these two ratios look at the cash flow and project mortgage qualifications.
5. Lenders and Apartment & Multifamily Financing Decisions
There's a great deal of due diligence done by both the buyer and the lender in apartment & multifamily investing. Virtually every marketing, advertising, management and expense line item in the financial statements are analyzed. Learn here how the lenders look at an apartment or multifamily project in making mortgage decisions.
