If you’ve been on the fence about multi-family real estate investing, take a look at the major benefits to help you make your decision.
Here are the main reasons investors choose multifamily real estate:
- Simpler to manage than several single-family homes. Whether you’re hands-on or whether you hire a property manager, a single location is simpler and more convenient to care for.
- Centralized onsite amenities can benefit and add value for all. Sprucing up a multi-dwelling or apartment building can add value–to each unit. For instance, adding a gym or laundry room could attract tenants in a competitive market, encourage tenants to stay long term, and/or allow you to raise rents on each unit.
- Opportunity for additional revenue streams. By adding that laundry room or snack/soda vending machine, you could also generate income from use of the machines, while still offering the tenant benefit (not having to travel to a laundromat, etc). Your machines would pay for themselves shortly and then you’ll profit. You could also allow pets, add a small dog-park, and/or charge a pet deposit, fee, and pet rent. Consider adding security cameras, or a patrol, to make your property attractive to high-quality tenants that value a secure environment.
- Tax advantages. You may be able to deduct depreciation of many items on the property, typically over many tax years. Be sure to consult a tax advisor to get all relevant benefits from your multifamily home or building.
- Many options to grow property value. Increased value comes from not only improving amenities and décor for higher rents. Positive cash flow attracts potential buyers. You could, for example, hold the property and collect rents until the market is in your favor, then choose to sell your multifamily real estate.
- Improve the community and quality of life for your tenants. You can take great satisfaction from providing a safe, high-quality place to live for local families. If you purchase multi-family property in a distressed neighborhood and rehab it, you can bring the whole zip code up in value by being the one well-cared-for property. This can encourage other property owners around you to spruce up their property, and so on.
If some or all of the above-listed benefits interest you, then multi-unit property investing may be a good option to consider.
Contact Star Capital USA to learn more about multifamily real estate funding today.