Multifamily Properties

Multifamily Properties

Browse listings of multi-family buildings. Filter by location, unit size, and rental income potential to find the perfect property for investment or development.

When purchasing a multi-family property, Three West can guide you through the following considerations, and help you determine the investment’s potential to generate steady rental income and appreciate over time:

  • Location and neighborhood: Ensure the property is in a desirable area for tenants, with access to schools, public transportation, shopping, and employment centers. The location’s safety and amenities are key drivers of tenant demand.
  • Tenant demand and occupancy rates: Evaluate the current demand for rental units in the area, as well as occupancy rates. High demand and low vacancy rates are indicators of a strong rental market, ensuring consistent cash flow.
  • Property condition and maintenance: Assess the physical condition of the building, including major systems such as plumbing, electrical, HVAC, and roofing. Maintenance costs can significantly impact profitability, so budget for repairs or upgrades if necessary.
  • Number of units and rental income potential: Consider the number of units and their sizes (e.g., studios, 1-bedroom, etc.). Analyze current rent levels, rental income potential, and the ability to increase rents over time based on market trends and property improvements.
  • Financing and cash flow: Explore financing options, including traditional mortgages, FHA loans, or commercial loans. Carefully assess cash flow, including gross rental income, operating expenses, and debt service, to ensure the investment meets your financial goals.
  • Tenant turnover and management: Factor in tenant turnover rates and the associated costs of filling vacant units. Multi-family properties require ongoing management, so decide if you’ll handle management yourself or hire a property management company.
  • Operating expenses and utilities: Understand the property’s operating costs, such as maintenance, utilities, property management fees, insurance, and property taxes. Determine whether utilities are metered separately or included in rent, as this impacts profitability.
  • Legal and regulatory compliance: Familiarize yourself with local landlord-tenant laws, rent control regulations, and zoning restrictions. Ensure the property complies with safety codes and housing regulations and understand your obligations as a landlord.