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Multi-Family Guide 101: What You Need to Know in LA County

Multi-Family Guide 101: What You Need to Know in LA County

Multi-Family Guide 101: What You Need to Know in LA County A multi-family property is a building that has two or more residential units under one roof. Los Angeles County provides a unique market for investors who want to purchase multi-family properties. There are many good reasons to invest in these properties, and if you find yourself buying one, you have a few key things to think about. You’ll also enjoy several benefits compared to investors who build a portfolio of mostly single-family homes.

Before You Buy: What to Know about Multi-Family Investments

When you’re looking for a multi-family property, start by evaluating the location, which is the golden rule of all real estate transactions. Look for well-established neighborhood where there’s a lot of growth. You’ll want to be sure your building will appeal to good tenants. Consider the size of the building as well. The most profitable and affordable multi-family properties are duplexes, which have two units, or buildings with three or four units. Consider the rent you expect to bring in and the amount you’ll have to spend on maintenance and other expenses.

Benefits of Multi-Family Properties

Multi-family properties provide extra security for investors. If one of the units is vacant, you’ll still have income from the other units. This can provide you with some peace of mind. You can also maintain the property more affordably. Any preventative or routine maintenance work that needs to be done can be done in every unit. Instead of sending your HVAC tech out to four different single-family homes all across the city, you’re keeping that tech in the same spot. That will reduce your cost. Multiple income streams can help you increase your cash flow. You’re generating multiple revenue streams from just one investment. We have worked with owners who live in one unit while renting out the other units. This can be especially profitable. With multi-family buildings, you also have more control over the value of your property. It earns more money, which means its value will appreciate at a faster rate. Investing in a multi-family unit is a great way to scale your investment portfolio and shelter your asset from risk. If you want to grow your real estate portfolio quickly, consider a multi-family unit over a single-family home.

Working with a Professional Property Management Company

While multi-family properties provide more income and less risk, there’s also more to manage. Managing a single-family home on your own is difficult, but it’s doable. Managing an entire building requires a lot more time and expertise. You’ll have multiple tenants to manage, and there could be more disputes than there would be with a single-family home. There are utilities to contend with, leases to enforce, and shared communal spaces such as yards, porches, and walkways. Maintenance may also be more frequent and involved. It’s possible you could have a major and expensive repair in each of your units at the same time. You’ll need a reserve in place and you’ll also need access to excellent vendors who can respond quickly. Working with a Professional Property Management CompanyA good property management company can help you manage your risk, your expenses, and your tenants. Contact us at Bell Properties, Inc. for more information about how to invest in multi-family properties around Los Angeles.