Multifamily Real Estate as Long-Term Investments
Updated: May 22
Time is a great advantage in real estate. The longer you can hold your investment, the better your returns. With the right strategy, you can leverage your initial investment to sustain multiple cash flow sources, build up your portfolio, and generate wealth that grows with every generation.
Are you considering real estate as a long-term investment strategy? Continue reading to know why Multifamily real estate should be included in your options.
Multifamily properties are rental units that form an apartment or a series of units within a complex. Investors love that this investment offers them stable income with minimal risks and the potential to scale. It also provides popular real estate advantages, including property appreciation, depreciation benefits, and tax incentives.
Below are ways that multifamily properties can contribute to your long-term investment strategy:
1. Multifamily properties provide stability, even in more difficult times.
Real estate properties are known to hedge inflation, but multifamilies offer the added benefit of low volatility. Demand for rental properties remains stable despite market changes.
In fact, demand for rental properties can go higher for certain property classes as more people look for more affordable options for housing. Having multiple tenants also gives added security to investors, who can rely on payments from multiple sources for their passive income stream. This makes them less vulnerable in the event of a default.
Some states, including Texas, reinforce this sense of security by recognizing non-payment clauses in lease agreements.
2. Multifamily investments help you diversify with minimal risk.
Adding multifamily to your portfolio helps offset any high-risk investments with its reliable income and tax advantages.
There are many tax efficiency strategies available to investors who want to explore multifamily properties: the strategic use of depreciation to ease the tax burden and generate savings, investing under LLC, declaring passive income taxes, and “1031 exchange,” which allows for deferred Capital Gains Tax when investing in similar investments.
All these strategies allow investors to retain more buying power to invest in their next deals.
3. Multifamily frees you to pursue multiple strategies to build wealth.
Time can work wonders for investments and building wealth. One of the most significant advantages of multifamily investment is it frees investors to pursue multiple goals.
General Partners, like Makaan Investment Group, manage the investment from day-to-day property upkeep and tenant relations to optimizing investment returns. All while investors enjoy the benefits of syndication.
Under syndication, you can pool your capital with others to invest in higher-value properties. In the process, you generate savings from operating costs through better deals with bulk suppliers. A professional team will be behind your investment, applying their years of expertise to ensure you get your money’s worth.
Are you interested in building wealth through Multifamily investments? Contact our team at 281-500-8554 or send us a message to review your investment options. Don’t wait another minute.