If this the first time that you will invest in a real estate property, chances are you will try to do deals in single-family homes from the start. However, if your goal is to increase your income, making a multi-family investment is one smart move you can make.
Here are the top reasons why you should give multi-family investment a try:
When there are multiple properties under a single roof, you can look forward to an easier management unlike if you will be managing several individual properties spread all over the city. This means that you will also need just one property manager who will handle things such as tenant issues, rent collection, and grounds as well as other management responsibilities.
Force and Phase Appreciation the Easy Way
It is very rare for appreciation to happen. You need to do some specific things to force up the property value or phase in benefits and amenities to tenants that will push up the appreciation. With a single family housing, you will not get as many choices with such activities since there is only so much that you can do. And you will only force the appreciation of just a single property. But with a multi-family investment, even the smallest and simplest changes can dramatically increase the property’s valye as a whole.
Create More Cash Flow
It is one exciting stuff since there are plenty of ways for you to generate cash flow aside from rents. For example, if your property as a studio apartment or a one-bedroom unit that will only be appealing to transient tenants, you can transform this into a clean, well-lit and safe laundry room with decent coin-operated machines. This is a welcome benefit to your tenants as they no longer have to make trips to the Laundromat.
Enjoy Great Tax Breaks
It’s always a great thing to provide housing, and this is also what the government thinks. Since you are technically helping residents through offering affordable, safe, and clean housing, you can get all form of tax incentives, or what you call tax breaks. You can get all those deductions since it is a form of business.
Multifamily Properties Don’t Lose Their Value
After the property is revamped, and you made it more attractive to tenants, this will also attract investors who will want to buy your property later on if you have plans to sell it. You have to ensure that your property is well maintained so that it will also retain its value down the road.
Change More Lives with Multifamily Housing
It is always a perk if you create a space where more families will be able to thrive. Wouldn’t it be great if you have a property which can attract families and give them safe, affordable, and clean housing, and positively impact their lives.
If you are still undecided whether or not you should invest in multifamily property, then, hopefully, these benefits will be more enough to convince you to make that move.
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