Commercial Investing in Cayman- Multi Housing Units

Interested in Commercial Real Estate investing? There are so many options to real estate investing from residential properties to multi unit housing. Multi unit housing is a common investment, although it can be risky, there is great potential to make a lot of money.

There is not a steep learning curve to multi unit housing, it is very similar to buying a home, or second investment property just on a much larger scale. Like buying a home, you have to find a property that suits your needs.

1.  Does it fit in your budget?
2.  Do you want to cater to the lower income tenant?  
3.  What kind of revenue will it produce? Usually lower income rentals will reap a larger return on your investments because you can buy a cheaper property in a less desirable area and still command great rental rates by offering smaller rooms with low rents, but more occupants i.e. higher density.
4.  Is it in a highly rentable location? Meaning, how rentable is it? I recommend trying to find a complex that is closer to the George Town and/or Seven Mile Beach. These locations are where a larger percentage of the Islands workforce is located. Your tenants want to be as close to work as possible.

The process to find a multi unit may take a bit longer; it's not like the residential market where new properties are on the market continuously. You have to be a bit more patient when finding those perfect multi unit properties in Cayman.

Once you have found that perfect property, it is now time to make the purchase. This seems to be the point when most multi unit properties don't become multi unit purchases. Your down payment for the bank is a bit higher because banks in Cayman view this as a business investment.  The amount is considerably larger than the down payment on an average single family home, which scares a lot of people off. However if you can get passed this point, the chances of making money on a multi unit property is much higher.

This is best part, once you have completed the purchase there is so much you can do. You can fix up the property and find tenants for your suites. You can hire a property management company that will take care of the building operations. Most companies in charge between 8-10% of your gross income. You can even turn around and sell the property after have it completely renovated and full tenanted.

Investing in multi unit housing can be a great experience. It is a fabulous way to make large profits. If you are serious about these types of investments, there's information available on the Internet or ask me for more info.

 

copyright : Paul Aiken
Re/Max Cayman Islands
Grand Cayman