Multifamily Investing

Multifamily investing generally refers to acquiring apartment buildings or complexes with multiple rental units under a single ownership, ranging from small two to four unit properties to large garden style or high rise apartment communities. Columbus, OH has a substantial multifamily market supported by Ohio State University's student population, a growing downtown and Short North residential base, and steady in migration to Franklin County, which generally supports rental demand across a range of unit types and price points. Multifamily property generally offers investors diversified income across many units, which can reduce the impact of any single vacancy compared to a single tenant property, though it also generally requires more active management given the higher number of tenant relationships and turnover events.

Multifamily property held for investment or business use generally qualifies as like kind real property for a one thousand thirty one exchange, making it a common target for investors seeking cash flow diversification or higher potential returns in exchange for greater management involvement. Columbus, OH investors evaluating a multifamily replacement property generally review unit mix, current rent levels relative to market rates, deferred maintenance and capital expenditure needs, and the property's location relative to employment and university demand drivers. Because multifamily properties generally require more detailed underwriting of individual unit conditions and lease terms than a single tenant net lease property, investors generally begin due diligence early in the forty five day identification period to ensure adequate time for property inspections and lease file review before the closing deadline.