Investing in multi-family Oshawa properties is a great way to minimize the risk of vacancy and lost income. Even if one tenant moves out, you know you’ll have rent coming in from your other tenants. Multi-family homes also provide positive cash flow and, assuming you have good tenants in place, a profitable and successful investment opportunity.
Of course, you’ll only meet your investment goals if you buy the right property. How can you spot a profitable multi-family rental investment in Oshawa? We have some tips.
Think about Property Size with Oshawa Investments
The size of your multi-family property will dictate what type of management you’re going to need and how much money you’ll have to invest in renovations, marketing, and turnover. A duplex, for example, requires a different approach than an apartment building with 50 units.
This is going to impact your property management cost as well as the logistics in how your property is managed, and by whom. You’ll need to have this planned before you begin looking at potential acquisitions.
A profitable investment will allow you to provide high quality, well-maintained homes without too much negative cash flow in the beginning of your rental process.
Focus on Well-Maintained Oshawa Rental Properties
For some investors, it’s tempting to invest in a building that needs work or a multi-family property that can really be transformed with some rehab work.
But remember – you’re looking for something profitable.
When you want to earn a healthy profit off of your new multi-family investment, you’ll want to find something that’s already in good condition. Cosmetic upgrades and modern updates should always be expected, but you don’t want to spend a lot of time and money renovating the entire property. It will only delay the cash flow you can earn and might even put you into debt.
Have the property inspected for a solid structure and foundation, with no apparent defects. Make sure all health and safety standards have been met and take a look at stairs, elevators, and communal spaces. Get inside specific units to see how they look and what kind of work may be needed before the vacant units are ready for the market.
Evaluate Vacancy and Tenant Retention Data
If you’re buying a multi-family property that’s already occupied with tenants, you’re already on your way towards being profitable. But, find out what kind of tenants they are and what sort of experience they’re having. If there’s a high retention rate, that’s an excellent sign. It means consistent rental income and fewer vacancy and turnover costs.
You won’t find a profitable multi-family property in Oshawa that loses tenants. When residents are eager to leave, it means there’s a problem with property management or with the building itself. Review the leases of any occupied property that you’re planning to buy so you know when your tenants might vacate. If leases are rarely renewed, find out why. Is it a problem you can solve?
A profitable multi-family property in Oshawa allows you to find and keep good tenants. You’ll be able to increase rent a bit every year and continue earning both short-term rental income and long-term returns.
If you’d like some help evaluating your options, we’ve been managing multi-family homes in the region for years, and we can tell you what to look for and what to avoid. Contact us at Investor’s Choice Property Management. We provide property management in Oshawa, Whitby, Courtice, Bowmanville, Pickering, Ajax, and communities in the regions of Durham and Clarington.