Top Benefits of Multifamily Investing
Updated: May 22
Reliable returns are an investor’s dream, even more if it comes at a lower risk. This is what makes multifamily properties appealing to new and seasoned investors—it provides a good foundation upon which you can build your wealth.
What are Multifamily properties? What advantages do they offer investors?
Multifamily properties are residential properties with two or more units under one roof. This category includes duplexes, townhouses, and some varieties of condos, which investors can directly manage or simply help finance with other investors.
There are myriad reasons why investors are keen on adding multifamily properties to their portfolio, but here are key advantages you should keep an eye on:
1. Increased Cash Flow
Investing in multifamily creates multiple income streams, from rental incomes to syndication profits. Additionally, accredited investors may choose to live in an apartment while earning income from leasing an adjacent unit to others.
This increased cash flow gives multifamily investors more freedom to grow their finances and pursue even bigger goals.
Growing your investment from one to several multifamily properties is much easier than single-family homes. Apart from the wealth of opportunities in syndication, multifamily investors enjoy greater ease in the bulk processing of business permits and insurance. Economies of scale also place multifamily properties at an advantage in finding the best deals from suppliers for property development and upkeep. Lastly, your real estate investment goes a little farther in multifamily with one property housing multiple units and giving you a head start to grow your passive income.
3. Cost-Effectiveness (great option for passive investors)
For some investors, resources such as time and mind space prevent them from putting their money into wealth-building projects. Multifamily gives these investors a great offer: a truly passive investment. The expected yield from this investment is strong enough to employ a property manager that can handle day-to-day operations, repairs, and tenant management. Passive investors can work with General Partners like our team at Makaan Investment Group to deliver their ideal yield without taking on the usual investor tasks and demands.
4. Tax Advantages
One of the most valuable benefits of real estate also holds true for multifamily properties: it offers plenty of tax advantages. An example would be using property depreciation to offset a sizable portion of the annual rental income they receive from their multifamily properties.
Specific states including Texas also offer additional incentives for investors. If you’re considering Multifamily Investment in Houston Texas, you can contact us today and start making your investment work for your financial goals.