When it comes to multi-family housing, there are several options for investment. Knowing which type of property to choose and partnering with strategic developers is the key to making the investment in multi-family a great addition to any portfolio.
The demand for multi-family housing is one that grows or holds steady year after year. It even does so in times of economic uncertainty. In fact, according to real estate analytics firm RealPage, the occupancy growth for rentals hit a new high just this summer. Not for the year… a new high for all time!
And that’s just the tip of the iceberg!
This is a market that will continue to grow in the coming years. So if you’re thinking about investing, now is the time to get serious. Keep reading to learn 7 critical elements for multi-family investment.
3 Different Types of Multi-Family Housing
Multi-family housing is classified as any housing unit where residents live separately in the same building. Or, where residents live in multiple buildings within one complex. These include apartments, high rises, condominiums, townhomes, duplexes, and more.
In addition, there are a few more classifications within these types to choose from:
- Student Housing – Where a significant portion of the rental units are intended for students attending a learning institution, typically close in distance.
- Age-Restricted Housing – Specifically for adults of a certain age. They differ from outright senior housing in that they may not have the same amenities on-site (like medical staff) and are closer to independent living facilities.
- Mixed-use Buildings – A combination of rental and commercial properties. These are often apartment complexes with a grocery store, gym, restaurant, or other amenities in the complex that offers public access.
At CDP, we have a seamless process for vetting, acquiring, and developing multi-family real estate opportunities. And, we have strict acquisition criteria that includes value add or upside potential, forecasted market growth, and more.
4 Factors of What to Look for in a Multi-Family Investment Opportunity
In addition to what’s outlined above, there are several factors to consider once you make the decision to invest in the multi-family housing industry. Beyond the potential income, here are a few things to be on the lookout for:
- Location: The location of an investment property is incredibly important. And we’re not just referring to the market either. Buying assets near education institutions and/or large employment bases are key for growth.
- Class: Asset classes are another factor to keep an eye out for. At CDP, we are only interested in class A or B properties. A class A asset is one that is high-end and high-quality, typically built in the last 10 years. And while class B assets are slightly older, they tend to be recently renovated and thus, are still a very attractive investment.
- Number of Units: The overall number of units in a multi-family property is also worth noting. For novice multi-family investors, the safe bet could be a duplex or triplex to start out. But because we take such pride in our acquisition strategy, at CDP, we look for assets on a much larger scale. And we are confident that each investment will deliver on our multi-family housing projects.
- Growth Potential: The demand for multi-family housing grows year after year, in part, because of generational trends in housing and in part, due to other factors. We look at the big picture, not just basic stats when considering real estate investments. That means tracking specific market growth and the income potential of any assets we find.
Partner with CDP to Invest in Multi-Family Housing
If you are interested in investing in multi-family housing, what’s needed above all is guidance. In this industry, you need a knowledgeable partner that has the experience and leadership to thoughtfully handle your multi-family housing project.
At Concord Development Partners, we pride ourselves on our investor-first mentality. We take a conservative approach in market analysis and selection criteria to protect investors and we’re committed to transparency in all markets and market conditions.
To learn more about how we can best serve you, contact our team today!