The real estate market in Kona has always been unique and for many people, complex. One of the constants, however, is the attractiveness of multi-family properties. This is a great time to invest in multi-family properties in Kona. If you’re looking for a new investment opportunity, consider a duplex, a four-plex, or even a small apartment building. It’s a good way to diversify your portfolio of investment properties, and many investors have found that these types of homes deliver more cash flow and better ROI.
Renting out a unit in a multi-family property is a little different than renting out a single-family home. Be prepared for the different challenges and requirements, and make sure you’re working with a property management company experienced in these types of investments.
Benefits of Multi-Family Homes in Kona
Multi-family properties provide extra security for investors. If one of the units is vacant, you’ll still have income from the other units. This can provide you with some peace of mind. You can also maintain the property more affordably. Any preventative or routine maintenance work that needs to be done can be done in every unit. Instead of sending your HVAC tech out to four different single-family homes all across the city, you’re keeping that tech in the same spot. That will reduce your per-unit repair costs.
Multiple income streams can help you increase your cash flow. You’re generating several revenue streams from just one investment. There are property owners who are willing to live in one unit in their building while renting out the others. This can be especially profitable. With multi-family buildings, you also have more control over the value of your property. It earns more money, which means its value will appreciate at a faster rate.
Multi-Family Investments Allow You to Diversify Your Real Estate Portfolio
Investing in a multi-family unit is a great way to scale your investment portfolio and shelter your asset from risk. If you want to grow your real estate portfolio quickly, consider a multi-family unit over a single-family home.
Diversifying has become more and more necessary as the tenant pool shifts and short-term rentals become almost as popular as long-term rentals. If you’ve only invested in single-family homes before, you need to consider thinking more creatively about how and where you acquire your next property.
Working with a Professional Kona Property Management Company
While multi-family properties provide more income and less risk, there’s also more to manage. Managing a single-family home on your own is difficult, but it’s doable. Managing an entire building requires a lot more time and expertise. You’ll have multiple tenants to manage, and there could be more disputes than there would be with a single-family home. There are utilities to contend with, leases to enforce, and shared communal spaces such as yards, porches, and walkways.
Maintenance may also be more frequent and involved. It’s possible you could have a major and expensive repair in each of your units at the same time. You’ll need a reserve in place and you’ll also need access to excellent vendors who can respond quickly.
A good property management company can help you manage your risk, your expenses, and your tenants. Contact us at Hawaiian Dream Properties, and we’d be happy to help you make a smart multi-family investment.