Why so few multi-units go into foreclosure

Reason one: Buyers of multi-unit purchases really analyze the numbers. Before buying, they analyze the rent roll, carefully weigh taxes and other expenses to make sure their investment properties will be profitable. Many purchasers of owner-occupied single-family homes don’t do that. They buy blind, hoping their income will be sufficient to pay the monthly cost. And sadly, they sometimes fail.

Reason two: Multi-units provide multiple income streams. If you own one, you can raise rents, repurpose properties as retail space or luxury units and take other steps to wring more income from properties. So an astute investor who buys a multi-unit property can create lots of new opportunities to make money.

Reason three: Buyers are lined up for profitable multi-unit properties. If you are lucky enough to own one and need to sell it - perhaps to raise money for an even bigger investment - you will probably not need to wait long for a buyer to appear.

When you add up those reasons why multi-families rarely go into foreclosure, it becomes pretty clear that it is a good idea to invest in multi-unit properties.

What have you learned from your experience? If you’re an investor who has owned multi-unit properties during the current foreclosure boom, please take a moment to post a comment below. Multi-units might just be the best income-producing, foreclosure-resistant investments that are out there today.