As a first-time real estate investor, consider buying a multifamily property.
If you’re interested in owning real estate as an investment, you know that the market is very competitive in Southern California pretty much all the time. It’s very competitive right now, but even before 2020, the last decade or so was the same story.
The market is extremely competitive for single-family homes in particular. There is very little inventory, and what does come on the market is generally seized after 20, 30, or even 40 offers have been submitted. The good news is, there are alternative options you can consider. Multifamily properties can be a great way to get started in real estate investment because that market is less competitive.
“The bottom line is that this is a great way to get into real estate investing.”
Even better, if you’re a first-time buyer or perhaps selling a condo and moving into a multifamily property, you can put less money down to buy a multifamily property and live there for several years. After two or three years have passed, you can go ahead and buy a single-family home and live in it. Meanwhile, you’ll still have that multifamily property you can then rent out for the long term. Now that you’ve established your rental history, you’ll get a better interest rate and more favorable qualifications when the time comes to buy your next property. On top of that, you’ll have all that extra income coming from that multifamily property.
You may have to compete against other offers to win the multifamily property you want, but we’re only seeing as many as two or three other offers in these situations—not the 20, 30, or 40 we see for single-family homes. The bottom line is that this is a great way to get into real estate investing.
As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m happy to help.