Are you thinking about adding a new rental property to your portfolio of Portland Oregon income properties this year, but you are struggling with deciding upon if you should add a single-family home or multi-family investment property? If so, you’ve come to the right place!
In this article we will share with you several reasons why you should invest in multifamily or single-family properties.
Why Invest In Single Family Homes?
One of the biggest reasons to invest in a single-family home for your next Portland Oregon rental property is the fact that most renters when they think of home, they think of living in a house vs. living in a multi-family property. This is why a renter will continue their search looking for a rental property in the PDX area, in hopes of finding a single-family home for rent, rather than renting an apartment, condo or town home.
Single-family homes are also highly beneficial because they enjoy high appreciation. This can be seen in the Portland Oregon real estate market where real estate has appreciated exponentially over the last five years following the Great Recession of 2008.
What’s The Downside Of Owning A Single Family Rental Property?
One of the downsides of owning a single-family rental property is that what the property sits vacant, you’re going to be responsible for paying your mortgage on the property and other expenses.
Although most owners and landlords in the Portland area haven’t had to worry about vacancies over the last few years, this could change thanks to coronavirus which has been responsible for closing many businesses in the Portland area to shut down in recent weeks.
With more people being unemployed due to coronavirus, it’s also possible that some landlords in the Portland area may face having to let the tenant continue living in their single-family rental property even though the tenant is unable to pay the rent.
There currently is a ban on evictions in Portland Oregon and most major cities across the United States. Portland’s ban on evictions is active until April 10th but, if the fallout from coronavirus continues to last through April, Portland May likely extend their ban on evictions through May.
Why Invest In Multifamily Investment Properties?
Multi-family investment properties are without a doubt one of the most ideal real estate Investments that an owner should have in their portfolio of investment properties. Why? The answer is simple, more doors equals more income.
Having more units producing income under one roof means that if one of those units is vacant, the owner can rely on the other units to produce income even during difficult times.
Some of the other reasons to invest in multifamily properties include:
- Easier to maintain – Yes it’s true, multifamily properties are easier to maintain than single-family rentals because all of the maintenance that the multifamily property requires will happen Under One Roof. Contrast this to the investor who has 6 single-family homes in their Investment Portfolio, when each property has a variety of different maintenance needs, that investor will have to hire six different contractors, or six different maintenance companies, to visit each of those properties individually instead of being able to take care of everything Under One Roof.
- Lower costs – Multifamily Investment properties also come with lower costs overall because, instead of having to pay the water, sewer, and trash on a variety of different properties, an investor who owns one multifamily property like an apartment building, condo, or townhome only has to pay the utilities or the water sewer and trash for one building instead of multiple properties in their portfolio.
- Easier to rent – Even though many renters want to live in single-family properties, another reason to invest in a multi-family property is that vacancies are easier to fill in single-family properties because there’s always going to be a renter who would be willing to live in an apartment, townhome or condo rather than a single family home.
Contact Rent Portland Homes
For questions about single-family homes vs. multi-family rental properties, or to speak with us about the property management services that we can offer you, contact us today by clicking here