Pam Keen, Pensacola Real Estate Broker and fellow investor, discusses considerations for investors looking to purchase multifamily investment properties in the Pensacola area!
We manage a lot of small multifamily properties including duplexes, triplexes, quadraplexes, and even small apartment buildings up to 16 units. With managing so many Pensacola area apartments, we have a lot of experience in what makes a good multifamily investment. Here's a few major considerations:
- Most small multifamily buildings are located in areas with other multifamily buildings, rather than in single-family neighborhoods. It's imperative to pay attention to how the other building owners are maintaining their units. This is imperative in attracting quality tenants and maximizing your rents.
- Look for better school districts. Many renters in these properties have school aged children.
- Consider area crime rates as your tenants surely will. Safety is among the top concern for tenants, and it is often a reason we see people vacate their lease early
- Consider the age of the property. This is important not only for maintenance but for insurance costs.
- Check the flood zone for the property. We've seen several small apartments that repeatedly flood. This will surely affect your ability to make a profit with your investment building. Keep in mind in Pensacola, your property does not have to be in a flood zone to be at risk of flooding. We recommend purchasing a flood policy regardless of whether it's required by your lender or suggested due to a higher risk flood zone. Flooding can occur from poor drainage, creeks, streams, drainage ponds, or even excessive amounts of rain in a short period of time.
If you have questions about multifamily properties, reach out to Pam via phone or email. She'll be happy to answer them.