Multifamily real estate investing can be a great tool for passive income and building wealth. If you’re interested in making a multifamily housing investment in Kansas, Barrett Funding’s experts can guide you through the process and help you secure financing with loan programs designed specifically for real estate investors.
What Is Multifamily Real Estate?
Multifamily real estate refers to residential properties that house multiple families, like apartment complexes.
At Barrett Funding, we consider multifamily to mean any property that has at least 5 units, and we’ve worked with properties of 100+ units. Our multifamily loan program services properties of this size, but we offer loan strategies for smaller properties as well.
Advantages of Investing in Multifamily Properties
Alongside office, retail, and industrial properties, multifamily housing is one of the “core four” types of real estate investment properties. It’s one of the easiest to understand and often provides a much more stable performance compared to other investments.
There are several advantages to a multifamily housing investment in Kansas, in particular.
Rental Income
Investing in rental properties comes with the obvious benefit of rental income. Not only can you use the investment property rent to pay down its mortgage loan, but once the mortgage is paid off, rental properties become one of the best passive income sources.
Plus, with a diversified tenant base, multifamily units are often cushioned from vacancy rates because leases don’t all expire at the same time. In a single-family rental, occupancy can drastically impact rental income.
Property Appreciation
Investing in real estate provides security through property appreciation. Property values tend to increase over time, providing stability. Plus, the value of multifamily properties is often based on the income they generate rather than market conditions.
Market Essential
Rental properties are an essential part of the real estate market and are one of the most adaptable investments during economic changes. During recessions, rental demand tends to increase because tenants have trouble finding financing for purchasing properties. Multifamily properties also tend to rebound faster after the initial volatility of a recession market.
Scalability
Multifamily investments allow investors to scale their real estate portfolios more rapidly than through single-family homes.
DSCR Loans Unlock Portfolio Growth
At Barrett Funding, we specialize in offering DSCR loans as a key tool for those looking to grow their portfolio with a multifamily housing investment. In Kansas and Missouri, conditions are great for investors looking to get into the market, as long as they have the capital to do so. DSCR loans can lower the barrier to entry, particularly for first-time investors, by removing the constraint of personal income verification.
Let’s Fuel Your Vision
Looking to get started with your next (or first) multifamily housing investment in Kansas or Missouri? Barrett Funding has the flexible financing you need to scale your portfolio efficiently.
