Why Multifamily?
People often ask us, “What are the advantages of being a multifamily investor?”
The answer is simple: by bringing rents up to market value and making some small improvements, you can build up a significant amount of equity in multifamily buildings.
What to look for as a multifamily investor? Here at Abel Real Estate Investments we always consider the following.
Location, Location, Location (Of Course)!
The cost of homeownership is very steep now, so many people prefer to rent. The multifamily investor should consider locations where economic factors (e.g. land constraint) are pushing up rents. At the same time, the investor should always consider areas where there is substantially high job growth, so that the occupants will be in a position to afford high rents. Finally, the location must provide an attractive atmosphere to live, work and play.
A Key Social Demographic
One social demographic that we believe especially deserving of your attention: Gen Y, With a population, all still under 30, estimated at roughly 72 million strong, they are the most educated, diverse, tech-proficient, and soon-to-be largest American generation, and, because of the state of the economy and their distinctive culture, are most attracted to the idea of multifamily living.
Gen Y and Life in the City
For one thing, many members of Gen Y are experiencing weak job security and the likelihood of having to change jobs, so they are reluctant to be burdened with a 30-year mortgage.
Furthermore, people of the Gen Y generation tend to think less about buying the “American Dream” and more about experiencing it. For them, this means the advantages of urban life: proximity to friends, to trendy restaurants and cafes, to all the amenities of city life. Utilizing apps and social media enable Gen Y to maximize their living experience in the city. The startup mindset is yet another factor luring them to the city.
And about the high rents: “there is an app for that.” Gen Y is dedicated to getting more with less – they can do without cars, relying on ride-sharing apps like Uber and Lyft, and are savvy consumers, relying on word-of-mouth or “buzz” advertising.
If you own or represent a multifamily property you would like to bring to our attention— why not contact us today?