Real estate investing can provide its owners with anything between a little extra cash flow, a safety cushion of equity, or generational wealth. But, of course, it all depends on your goals, how you structure them, and what you put into them.
When deciding on your investment strategy for your first property, you will have to choose between buying a single-family residence (SFR) or a multi-family building. While many people see purchasing a single-family as a steppingstone into multi-family, that is not necessarily the case. If you want to focus on multi-family apartments, it is possible to start with them directly.
Multi-family apartments typically get built from the ground up. That makes them great to operate as rental properties. That can translate to lower maintenance costs, more efficient floorplans, and better rent-to-value ratios.
Many investment styles can work. Real estate investing is not a one size fits all sort of process. It is crucial to figure out your preferred investing model, define what property fits this model, and find a property that fits these criteria. Suppose you do not set out with this level of intentionality. In that case, you will be liable to be whipped around the market and spin your wheels looking for deals.
Getting a loan on an investment property can be a bit different than a mortgage on your primary residence.Conforming Loans: Mortgages sold to Fannie and Freddie are in this category. These are the loans that most big banks offer. Usually, these have low fixed rate interest and a lot of documentation requirements.