One of the biggest upcoming trends in Florida real estate development, and real estate development around the world, is multifamily housing. The definition of multifamily housing is this: a building with more than one family inside it’s dwellings. Examples of of multifamily housings are condos, apartments, duplexes, and townhomes. Often, the building is owned by a single person or company and each unit is rented out to the individual family. However, there are cases where each unit is individually owned by the family occupying it.
There are a many benefits to owning a multifamily housing building. The greatest of these is that it is all located within one building which means you are only paying taxes on that building as a whole. For those who rent out multiple properties, with each different property, there’s an additional tax to be paid. Another benefit to owning a multifamily unit is that there are more people closer together. This can mean needing you less for simple repairs if there is someone else in the building who is willing to provide their good samaritan efforts to help a neighbor in need. It also can mean you have many eyes on the building without having to be there yourself. If you decide your building is going to be pet-free, tenets are less likely to break that rule with other people watching them.
Like all things in life, owning a multifamily unit comes with its own set of challenges. Think back to your college years: living in the dorms, you were surrounded by many different personalities and sometimes not everyone got along. Because of this, conflicts can arise which will need your immediate attention. Another thing to be cognizant of is the many different repairs that need to be dealt with. If you’re a handy person and want to tackle these repairs on your own, you could save a whole lot of money. However, sometimes it’s better to call in the professionals.
Overall, multifamily housing can be a profitable investment. The best part is, your building won’t be the first of its kind so be sure to reach out and network with others who have walked this path before you.