Is Multifamily Real Estate Syndication Better Than Single Family Homes?
Multifamily real estate syndication has several advantages over single-family home investments. With SFHs you take on all the risks and responsibilities. This not the case when you work with a syndicator. Plus, you can make bigger deals with the same amount of funds. There are more reasons why investing in multifamily properties is an attractive option for passive investors.
Reduce Management Expenses
Multi-family syndication is more economical than single-family dwellings. SFH operating expenses are generally higher because the properties are scattered across several locations. Also, these properties don’t produce enough income to offset the cost of hiring a property management company. Centralized multifamily properties generate the revenue that enables you to hire a company to handle the daily operational tasks.
Multifamily syndication saves you a lot of time. With multifamily real estate syndication, syndicators handle all phases of the investment process. They take care of the following:
- Locating properties
- Handling the loans
- Managing properties
SFH investing requires that you tackle all these activities on your own. It’s a very time-consuming approach that requires a great deal of involvement on your end.
Maintain Positive Cash Flow
The occupancy rate with multifamily real estate keeps more money in your pocket. A tenant who moves out of an SFH amounts to a 100% vacancy. This leaves you covering mortgage payments and other expenses. You can still sustain working capital even if tenants leave a multifamily property. For example, 10 vacancies in a 100-unit apartment complex will not negatively impact your revenue. Multifamily vacancies don’t have as much of a negative effect on cash flow as SFH vacancies.
Work With a Results-Driven Deal Makers
Multifamily real estate syndication is a viable alternative to single-family property investments. They’re less expensive to manage, and a syndicator handles the investment process for you. Additionally, high occupancy rates make it easier to retain cash flows. Contact NSD Ventures today, so our experienced team can execute your multi-occupancy rental property project.