few of the Pros and Cons of Multi Family Units... 2010-09-25
发表于 : 2014-05-16 8:46few of the Pros and Cons of Multi Family Units... 2010-09-25 18:38:43
haha, MFU complex has its goods and bads, I usually don't recommend beginner jump in a big complex without any prior experiences, one should start with SFH in decent condition, I personally did not own any MFUs till I had over 20+ SFHs, but to reach a greater scale, eventually you have to look into commercial MFUs..
here are few of the pros and cons I can think of..
Pros
1. cash flow can be very good compare to SFH, due to lower per unit cost.
2. per door maintenance is much less since they all in one location.
3. centralized office means less traveling for you or handy man.
4. Insurance cost also cheaper compare to SFH.
5. similar floor plan, similar setup, easier to manage.
Cons.
1. Higher vacancy rate due to centralized location, aka, neighbors.
2. higher cost of leverage, shorter term loan.
3. commercial loan is harder to get, or maybe near almost impossible.
4. lower quality tenants, more younger generations.
5. owner usually has to pay basic utilities as water, sewer, and trash pickup
haha, MFU complex has its goods and bads, I usually don't recommend beginner jump in a big complex without any prior experiences, one should start with SFH in decent condition, I personally did not own any MFUs till I had over 20+ SFHs, but to reach a greater scale, eventually you have to look into commercial MFUs..
here are few of the pros and cons I can think of..
Pros
1. cash flow can be very good compare to SFH, due to lower per unit cost.
2. per door maintenance is much less since they all in one location.
3. centralized office means less traveling for you or handy man.
4. Insurance cost also cheaper compare to SFH.
5. similar floor plan, similar setup, easier to manage.
Cons.
1. Higher vacancy rate due to centralized location, aka, neighbors.
2. higher cost of leverage, shorter term loan.
3. commercial loan is harder to get, or maybe near almost impossible.
4. lower quality tenants, more younger generations.
5. owner usually has to pay basic utilities as water, sewer, and trash pickup