Multifamily Is Gaining Popularity From More Then Investors.

By sonoran • July 22nd, 2008

Multifamily or Muli-unit properties are regaining popularity not only amongst investment real estate buyers but buyers who want to purchase such properties for owner occupancy. 

This is trend which will probably grow and it presents an opportunity for builders and current owners to build and update existing properties to cater to this new clientel.

This type of property, in certain areas, can have multiple functions:

1. For investment.   Though prices of homes have fallen on the outskirts of Phoenix the prices in the urban areas are still high and they will not fall to such levels as to allow many people to buy them.  The increasing density and popularity of urbanism means that rents will increase.


2. For and extended family.  More so then in years past we are receiveing a lot of interest from buyers wanting to purchase a mulifamily property such as a duplex, triplex or fourplex to live together with an extended family, each occupying a unit and renting out any remaining units.  This may be a good economic strategy vs. buying several homes in an area.


3. For a vacation rental.  Instead of buying a condo or house some snow birds are buying a small multifamily properties and leaving one unit vacant to serve as their vacation home.  There are many very nice areas in Phoenix and Scottsdale close to shopping, businesses and transportation that are perfect candidates for such a venture.  While not in use the property produces income, often enough to cover the cost of the vacant unit. 
 

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