At SRC Land, we have many seller-financed properties for sale in Harlingen! With all the areas of financial opportunity 2022 will bring, we suggest that you consider buying land and building multifamily homes for the upcoming year.
Multifamily homes are buildings that contain two or more units that may house one or more families. These multifamily properties include:
- Apartment complexes
- Duplex, triplex, and fourplexes
There are four essential factors to consider when investing your future commercial property into a multifamily business, all of which you can read about below.
One of the most vital things to consider when investing in a multifamily property is location. It is crucial to research where you would like to locate your multifamily property business. The best location for your multifamily property must be:
- High-growth potential
- High-yield of income
- An area where properties are in high demand
- Around ideal and well-maintained neighborhoods
2. Number of Units
Another factor to consider when investing in a multifamily property is the number of units you would like for this property to include. It is well known that the more units you have, the more potential tenants you may be able to rent out to. To figure out how many units you would like to invest in, you need to take your budget and earning potential into close consideration.
When you are beginning your journey owning a multifamily property, consider investing in affordable properties that offer the most with the least risk, such as:
- Duplex (two units)
- Triplex (three units)
- Four-plex (four units)
3. Potential Income
One of the most important things you need to consider when investing in a multifamily property is the amount of potential income you may receive as your business grows.
To figure out your potential income, you must consider the amount of rent you are willing to price your units at, as well as the expenses you will give to your property, such as maintenance and repairs.
Most investors agree on a good rule of thumb: the “50 percent rule.” This rule means spending 50 percent of the investment’s income on expenses over the mortgage.
There are various costs to consider when investing in multifamily properties, such as:
- Interest rates
- Property taxes
- Maintenance fees
- Utility costs
- Vacancy costs
These costs vary depending on the location, state regulations, and the deal you made with your lender. Be sure to have a conversation with your CPA about these costs before you make your final decision.
SRC Land helps people struggling with bad credit and first-time landowners buy the land of their dreams. We currently have lots throughout Houston, Brownsville, Los Fresnos, Donna, Harlingen, and East Texas! via @SRCLand
Invest in a Multifamily Property with SRC Land!
Aside from the location, the number of units, potential income, and costs associated with a multifamily property, you will need to search for any available commercial properties for sale!
At SRC Land, we have a plethora of seller-financed properties for sale in Harlingen just waiting to host your multifamily housing. We can help you achieve the property of your dreams to begin your multifamily property business using our loan servicing!
Reach out to us to learn more about the property listings we have on sale today!