Consider: Multi-family unit investment
Multi-family unit investing can be one of the best decisions in your portfolio! When prepared properly for tenancy, when run appropriately and when there are enforceable rules and regulations, you can expect excellent return on your investment. In Lake County, multi-family properties are still affordable, and many are situated on commercial property that is bound to show improved land value in the future.
When considering where to place your commercial property investment dollars, you would be smart to consider this choice which, under scrutiny, shows more upside than down! Facilitating that “upside,” however, means taking a long hard look at the responsibilities and disciplines necessary to produce investment success in this venue. Some critical considerations
— if you are exploring multi-family unit properties — have to do with the uniqueness of long-term management specifically appropriate to the end users: families!
You may plan to operate your multi-family commercial facility yourself, or you may want to hire and develop an experienced onsite management team. In either circumstance, it is important to have structure, enforceable rules and regulations, an understanding of typical multifamily facility challenges and a commitment to the maintenance of a quality environment.
When viewing and considering multi-family investment possibilities, you will no doubt encounter a wide range of existing circumstances.
There are properties available that would require anything from complete renovation, just cleanup and repair, radical changes in tenancy all the way to excellently maintained and operated facilities. Be sure you consider just how much preliminary work you want to take on before you can see that red line turn black.
It's easy to see that the key to success in this venue lies in some pretty basic values! A clean, wellmaintained place for families to live will attract and retain tenants who will do their part to keep their living environment desirable. If the Rules and Regulations you develop are not enforceable (or if you find it difficult to do the enforcing!) deterioration can be just a matter of time.
Sometimes it's smarter to consider a facility that is older and tired, but has excellent potential because of its location, its neighbors or near-by area development. In such a situation, you would have to be prepared and willing to take on everything from construction issues to possible tenant evictions and later re-tenanting. Such a situation is one that promises future benefits, but significant near-time preparatory work.
There's a wide variety of multi-family unit facilities. Investors see definite distinctions. For instance, the difference between “mobile home parks“with semi-permanent residents compared to “RV parks” with in-and-out residents. They have similarities as well as definite differences when it comes to maintenance: a basically stable, consistent return (mobile home park tenants); and transient activity (RV's), a bit more tenuous for financial projections.
Whether the multi-family commercial investment property you are considering is permanent structure apartment housing, duplex or triplex homes or mobile unit facilities — the key to stable tenancy and consistent financial return lies in the quality of the relationships developed, efficient and dependable maintenance, clarity of mutual expectations and enforceable rules and regulations that have consequences.
If this kind of commercial real estate investment appeals to you, it can be rewarding on many levels — financial and personal!
Jim Magliulo is the leading Commercial Real Estate Agent in Lake County. He has been the company's Sales Agent of the Year for 5 years and holds the Lake County record for the highest total sales volume in one year for a non-broker agent. He can be reached at County Air Commercial at 707-2635729, at jim@countryair.com, or at www.CountryAirCommercial.com.