Multi-Unit Properties Offer Stable Income Stream

Foreclosures and short sales have created a pricing bonanza for investors.

The real estate recession that swept across theUnited States has created an opportunity forthose with the means to invest. States acrossthe country that forecast stable employmentprospects and continued economic growth offerthe greatest values.

Multi-unit complexes withinthese states offer evengreater value for willinginvestors. Investors may want

to take advantage of potential values offered instates such as California, Florida, Texas andMinnesota, as they are all showing somepromising signs of an economic recovery.

Multi-unit residential buildings typically offer alower per-unit entry point than traditionalsingle-family homes. Each unit offers a long-term income stream for the property owner.

In addition, more units mean a reduced impacton you when there are vacancies. When atenant vacates a single-family home the vacancyrate jumps to 100%.By comparison, a 10-unitcomplex shows a vacancy rate of 10% when asingle tenant vacates.

Investors can see value in a stable incomestream that should continue to grow as vacancyrates drop, causing rental rates to rise.

Although some states may show initial drops in rental income as the overall housing markets continue to adapt, increased foreclosures and uncertainty in the housing market mean there are fewer buyers and a growing number of tenants who are actively looking for affordable housing.

Investors will continue to benefit from lowerprices caused by the oversupply of multi-unitproperties being offered across the U.S. as shortsales and foreclosures. This trend should slowlyfade as 2011 progresses.

However, the impact of themortgage crisis and theresulting real estatedownturn will continue to

have a bearing on pricing for years to come.Fiscal responsibility will be foremost withlenders as they look to recover the losses of thelast few years.

Investors may struggle to get adequate financing.They may also need to be capable of financingsome or all of their investments, specifically thehigh-risk or high-reward variety. The reality forinvestors is that there is an opportunity to investin reemerging real estate markets.

The economy throughout the U.S. is stabilizing,and there are ample signs of growth. As thelabor market once again begins to believe in theeconomic stability of the country, the economywill thrive and growth will be seen in all sectors.

For investors, this provides an early opportunityto capitalize on future growth. Multi-unitproperties offer a stable income stream alongwith continued sustainable long-term growth.

Foreclosures and short sales have created a pricing bonanza for investors, and bargains are still available in most markets across the country. Multi-unit properties will continue to offer good returns as 2011 progresses.

Randy Bettwww.BetterGroupRealEstate.ca