Are you planning on investing in a new multifamily rental property in the Portland area? If so, you’ve come to the right place! Learn more about property class types here.
Before investing in just any multifamily property, you should think about the class of the rental property that you want to invest in.
Understanding the multifamily rental class is important because, with the changes in the rental market, it’s more important than ever before for investors to be at the right place and the right time so that they can invest in rental properties where there’s a high demand for those properties.
In this article, we will break down multifamily real estate property types and provide you with insight into which types of Portland rental properties you should be investing in right now.
Class A Rental Properties
In Portland, we’ve seen a lot of Class A multi-family property built over the last five years, especially in the Pearl District. These buildings are typically a mix of both residential and commercial. The great thing about investing in Class A buildings is that since they are newer, they often have fewer maintenance issues than a class B or C multi-family property.
If you were to step inside a Class A multifamily property unit, you would find modern amenities including granite counter tops, hardwood floors, and many other features that today’s modern tenants are looking for in a multi-family property.
Should you invest in a Class A multi-family property right now? Especially when the economy is in the midst of an economic recession?
Even though the economy is struggling, the reality is that you may find some great deals out there on Class A properties but it’s important to realize that demand for Class A rentals might be down for at least the next two years so keep that in mind before you choose to invest in one of these properties.
Class B Rental Properties
In most cases, Class B multifamily properties are a slightly older version of Class A property.
These properties are typically between 15 to 30 years old and have some of the features of a Class A multi-family property plus maintenance may be slightly higher on these properties as well so it’s important to keep that in mind before you choose to invest in one.
The good news about Class B properties is that these properties are easy to upgrade and it’s possible that you could (after making several renovations) upgrade a Class B property to a Class A rental.
Class C Rental Property
Last of all, but most important are Class C Multifamily Properties. These properties typically up to 30 years old (or older) and have been known to sometimes be in a state of disrepair. It’s possible to find a Class C multifamily property that requires some renovation but the good news is that after little work, it could be renovated to become a Class B multifamily property.
Which type of multifamily property should you choose? Ultimately, the answer is up to you but, once you do decide to purchase your multifamily property, the most important thing that you want to do next is hire a professional property management company to manage that property for you.
Contact Property Management Systems
At Property Management Systems, we specialize in full-service Property Management including property marketing, tenant selection, maintenance, rent collection, customer service and so much more.
Learn more about the property management services that we can offer you, contact us today by clicking here to connect with us online.