Investing in multi-unit properties is often seen as an investment that comes with many challenges that can quickly become overwhelming for the typical investor. These myths and perceptions regarding costs, difficulty, and the time commitment to manage these investments are discouraging many from exploring what could be a truly rewarding venture.
By exploring this guide, we will discuss and debunk some of the most seen myths about investing in multi-unit, multi-income properties. We will also show you how OakWood Design & Build’s reputable and trusted services can simply your investment journey. With over four generations of experience, OakWood is your trusted partner for helping you navigate the world of real-estate investment in Ottawa.
Table of Contents:
Myth #5: The Challenge of Finding Good Tenants
The Tenant Challenge
You may have heard from word of mouth that finding great tenants is extremely difficult in today’s rental market. That cannot be further from the truth. All you need are effective strategies to manage your tenants more effectively, efficiently and most importantly, less stressful!
Strategies for overcoming tenant related headaches:
- Comprehensive tenant screening: By implementing strong screening measures, you are creating an essential process for discovering extremely reliable tenants who will have a higher probability of paying you in a timely manner and respect your property. By conducting background checks by checking references, looking at credit histories and asking about their employment status, you can reduce your risk of finding tenants who will cause problems to you, your property and your neighborhood.
- Professional management solutions: By hiring a professional property management service provider, multi-dwelling property owners can get the peace of mind knowing that a lot of the hassles that come with managing tenant related complaints and problems.
Myth #4: High-Risk Investment
Understanding the risk factor
Another misconception is that multi-unit, multi tenant properties are a high-risk investment that should only be managed by those who have previously had success with their own rental property investments. In fact, multi-unit properties have proven itself to provide investors with stable and profitable returns when approached when using strategies that mitigate your investment risks.
Strategies to mitigate your investment risks:
- Diversification of income: By creating properties with multiple units (and multiple tenants), you are creating an efficient way of diversifying your investment portfolio through multiple streams of income which helps reduce your risks. For example, if one of your tenants leave, its vacancy does not cut off your entire income from that property.
- Expert risk management: Multi-dwelling property owners can also reduce their risk burden that comes with expenses such as tenant turnovers, maintenance costs, compliance by working with reputable property managers and advisors who will help reduce any perceptions of risks.
- Informed decisions through research: You can ready yourself and make better informed investment decisions that are strategic, lower risk and ensures the long-term viability of your investment by conducting market research and consulting with real estate experts.
Myth #3: Full-Time Job Myth
Reevaluating time commitment
A good amount of people believe that investing, owning and maintaining multi-unit investment properties is similar to a full-time job. This is not the case. In fact, with the right guidance, support and by collaborating with the right designers and builders, you can be well on your way to making passive income a reality for you without needing to invest a huge amount of time.
Creating passive income streams:
- Strategic property design: By working with the right custom multi-unit investment home designers and builders, you can achieve a high quality design that allows you to minimize the amount of maintenance costs for repairs in the future. By incorporating the best materials, your property will be able to run itself for much longer periods of time without significant maintenance expenses.
- Professional property management: You can eliminate the hassle of day-to-day tedious tasks by outsourcing them to a reputable property management company who will handle everything from collecting rent, complains and maintenance requests so you can focus on what matters most.
- Long term income potential: By making smarter investment in properties that are built to last, you will benefit from long-term passive income opportunities that come with less direct involvement.
Myth #2: Complexity Myth Busted
Simplifying the complexity.
Understanding various property zoning laws, grasping building codes and looking at renovation plans can make owning let alone managing a multi-unit property investment seem daunting and overwhelming. Partnering up with a reputable custom multi-unit home builder simplifies this process and let you focus on your financial goals.
Streamlining the Investment Process:
- Expert guidance at every step of the way: By working with reputable and knowledgeable leaders within the custom home experts such as OakWood, you’ll be able to get the guidance and the support you need from planning and design all the way to construction and occupancy!
- Simplified compliance: Our team of experts have a detailed understanding of topics such as zoning laws, building codes and construction (or renovation) standards that will make sure that your investment will successfully go through all of the regulatory requirements without the hassle.
- Efficient approval processes: Our team of multi-unit property investment designers and builders can simplify your approval processes and help speed up the success of your investment without skimping on compliance with regulations.
Myth #1: Only for the Wealthy- Wealth Requirement Myth
Breaking the wealth barrier myth.
Many believe that you need to be wealthy and have a lot of disposable income or cash to invest in multi-unit investment properties. But by working with financial advisors and builders who offer innovative and strategic financing options, adding an investment property is much more accessible than one might expect!
Making Multi-Unit Investments Accessible:
- Creative financing solutions: If you’re like most people, you should be exploring financing options that take advantage of your preexisting equity. You could also form partnerships with other stakeholders or search for loans that are favourable to you on the long term to reduce your initial financial investment burdens.
- Comprehensive financial planning: Get assistance from a team of real estate professionals and carefully plan your budget to align your investment goals with your financial position and objectives.
- Access to financial networks: A reputable investment property design and build firm will help you get acquainted with a large network of financial investment experts who can help you secure financial assistance to help you meet your project requirements.
Ready to start your journey towards real estate passive income?
As shown in this blog post, investing in a multi unit investment property doesn’t mean that you need to be wealthy, deal with a huge amount of risk nor does it require a huge time commitment.
With the right industry professionals who are equipped with the resources and guidance, you’ll be able to smoothly benefit from the rewards that come with owning and renting out your investment.
Contact OakWood today to learn how we can make your investment ambitions a reality today!