Multifamily assets appeal to some investors due to their liquidity — or how fast the property can be sold at market value. Additionally, multifamily properties provide a consistent income stream through tenant rent payments, and the property can often increase in value over time.
Investor Fundamentals
Diversifying your investments is always a good idea. And in an economic moment like the present, it's a borderline necessity when the market looks to be approaching a volatile period.
If you’re considering adding commercial real estate to your investment portfolio, look no further – this is the article for you.
Investors use cap rates (short for capitalization rates) to gauge the quality of an investment. But what is a cap rate, how is it used, and how is it calculated?
Utility costs represent a major expense for landlords. This is especially true at multifamily apartment buildings where base rent often includes utility costs. When landlords must incur these costs, the cash flow impacts can be substantial. In this article, we will look at what’s known as RUBS -or a ratio utility billing system. Implementing a RUBS program is a common way owners pass utility costs on to their renters.
As you may know, increasing the Net Operating Income (NOI) of any commercial property will not only increase your cash flow but also increase the value of your property since the value is determined primarily through NOI and Capitalization Rates (quick refresher on how to calculate the value of the commercial property).