Multifamily homes have many key benefits. Investments in this type of real estate generate income and resist recession.  Early-stage real estate investors should carefully consider the location of their purchase since location is a key indicator of future cash flow and appreciation of the property they purchase. If you are searching for an investment property, Realtors in Yonkers, NY, can find the best cities to invest in and the best locations to buy affordable homes.

Buying a residential building as a profitable investment

Apartment buildings can provide liquidity and appreciation. Save money and rely on experienced real estate agents in New York to find the right investment property for you.  These agents do all the work efficiently and quickly, in full compliance with your needs. As many investors move into larger and larger complexes, the scale nature of multifamily investments becomes increasingly important. Some investors and investment companies are able to buy more than 100 residential buildings. Investors can find new profitable opportunities in the US housing market and take on more risk by investing in multiunit housing. These properties all investors to tap into the hottest, high-demand rental markets. Additionally, multifamily and large investment properties offer various tax benefits that help maintain cash flow.

Which cities are the most profitable for multi-apartment investments?

When homeowners are looking for a home that best meets their key, immediate needs, investors focus on the numbers. Doing your due diligence will help you study and thoroughly analyze the real estate market in major cities before successfully investing in apartment buildings. Supply and demand rapidly move the economy forward.  Therefore, growing cities help investors maintain close to 100% occupancy since everyone needs a place to live, and cities don't have room to build new real estate. Additionally, population growth increases the demand for each property unit, giving investors more opportunities to increase rent in the future.

Active job growth is also an important factor.

The influx of population and increase in employment indicate the constant growth of the city.  These cities will have high demand for apartments and higher rental incomes.  Conversely, cities with high population density and rising unemployment are more likely to experience crime.  Carefully consider your options before purchasing in these cities.  

When calculating the potential return on investment, look at current rents to help estimate the property's profit margin. Some apartment complex owners have not raised rents enough, creating great opportunities for new landlords. Investors should also keep an eye on previous lease terms. 

Active development of urban infrastructure

Developers improve cities by building new infrastructure. The city can create new parks, administrative buildings, or other structures that make the city more attractive. A more attractive city attracts more people. 

Profitable places to buy multi-apartment investment properties in 2023

New York has more apartment buildings than any other state, but other cities rank highly for investment opportunities. This list of 10 includes cities with high growth potential.

10. Miami, Florida

Many snowbirds migrate to Florida from the Northeast, increasingly staying in the sunshine state year-round. It offers a vibrant nightlife, diverse cultures, and plenty of entertainment.

9. Cleveland, Ohio

With over 385,000 residents, Cleveland was recently named the 5th best city to live in in 2020. Cleveland has an efficient healthcare system while maintaining a small-town feel.

8. Austin, Texas

Austin has a population of over 950,000, and many West Coasters travel to the city for fun. The city has many nature trails, lakes, and parks. The city is home to many high-tech companies, such as Apple and Oracle.

7. Atlanta, Georgia

Atlanta has a strong economy, world-class restaurants, and a mild climate. Affordable housing, historical significance, and other services attract many buyers and investors who plan to buy a home here at a good price.

6. Charlotte, North Carolina

North Carolina cities have a strong job market, and Charlotte is the most attractive city with a pleasant climate. All these key benefits also mean a low cost of living.

5. Phoenix, Arizona

Phoenix real estate is in high demand, as evidenced by the fact that more than 1.6 million tourists travel there each year to see its many attractions. There are many things to do in the city, with the Grand Canyon and Las Vegas also nearby. Summer is hot; winter is snowless. The population of the city is 1.6 million people.

4. Boise, Idaho

Boise is a small city, but it has a lot of potential. Over 226,000 people call Boise home, and it has some of the most beautiful hiking trails and mountains. Many outdoor activities are accompanied by a low cost of living and good weather. Boise rental properties have high occupancy rates.

3. Dallas, Texas

Dallas has a thriving economy with plenty of jobs. The population of the city exceeds 1.3 million people. The cost of living in Dallas is about the same as the national average.

2. Las Vegas, Nevada

Las Vegas attracts international visitors with its casinos, but the city has much more to offer. The population of this metropolitan area is over 675,000. Many people like the low prices and warm climate of Sin City.

1. Raleigh/Durham, North Carolina

Raleigh/Durham has a population of over 464,000 residents. Leading universities are located in the city. These universities attract young specialists and create thousands of jobs. The city also has scenic spots and plenty of nightlife.

What are the keys to investing in apartment buildings?

Investing in multi-apartment real estate allows you to purchase incredible real estate, generate cash flow, scale your business model more easily, and get profit from your purchased real estate. However, this property should have a higher residential monthly income relative to your monthly payments. 

These properties have serious barriers to entry due to the large downpayment needed to purchase apartment buildings.  However, experienced real estate agents can make these apartment buildings more accessible to investors. You can cooperate with other investors in the purchase of several family houses. Investors receive monthly payments and are property owners but share the burden of expenses. 

Experienced real estate agents are actively engaged in property management, appraisals, and other real estate matters. If you want to participate in the investment of an apartment building but do not have enough money and time to manage it, invest together with other investors. Explore other options by using the services of experienced agents in the field of actively developing real estate.

Which property do you want to invest in?

The decision to buy an apartment or a house is not easy. Real estate is an expensive investment. For many people, it is the biggest investment in life. And it is not always worth buying it. A simple formula determines when the investment is worth it and at what price buying is a more valuable process. 

Purchase Price / Annual Rent = Purchase Ratio  

This ratio should be less than 20. For example, if the property is valued at $300,000 and the annual rent is $15,000, the purchase ratio is 20. In this example, it is worth buying. Of course, this simple formula does not determine the purchase. Because the value of an investment depends on many other key factors besides the purchase price, however, these calculations are useful as a guide. Other key factors for or against a property purchase decision include:

• Condition of the property

• Demand for this type of real estate in the region

• Location of real estate

• Infrastructure development

• The professional and financial situation of the potential buyer

• Plans of the investor

Buying real estate as an investment is generally worthwhile. However, with rising interest rates and associated costs, many people can no longer afford to buy. This means that the demand for real estate is falling. Those with large capital have a clear advantage. With less demand, buyers are more likely to secure their dream property. Informative negotiations can lower the proposed purchase price. The services of qualified real estate agents allow you to get the real estate of your dreams at the best price. In addition, demand for apartment rentals is also higher than last year. 

Is it smart to invest in real estate with less equity?

Rising mortgage rates forced many buyers and investors to say goodbye to their dream of owning a home. They cannot afford to buy real estate due to the lack of necessary funds, rising housing prices, and even higher interest rates. In addition to the cost of purchasing real estate, there are also costs such as notary fees, transfer costs, and brokerage fees. The cost of additional expenses is, on average, 8-12%. You can find out all the necessary information about additional commissions for the purchase of real estate directly from the real estate agent of your choice. Many banks require 5.5% of the purchase price as loan terms. Some banks finance the entire purchase price of real estate. In this case, the buyer bears only the additional costs of acquisition. In the case of this type of integrated financing, the interest rate on the loan is usually higher.