For the longest time, Multifamily property investments have proven to be an excellent way to diversify a larger investment portfolio for real estate investors. We listed down five reasons why investing in commercial multifamily is the best financial decision you'll make this year:
100% Passive Income. No tenants, toilets, and trash!
Forced Appreciation. We deploy capital to improve parts of the apartment that will generate the highest increase in rent. *This increases the NOI (net operating income), and increases the value of the property at sale.
Inflation Hedge. As inflation rises, so do property values and the rent prices. Over time, this will result in higher rental income.
Tax Benefits. Our government rewards activities that provide housing:
Bonus Depreciation – 100% deduction on assets with less than 20 years of useful life. The depreciation can be used against other passive income and capital gains, or active income if you are a real estate professional.
Cost Segregation – Properly categorizes assets into the correct classification and recovery period for federal and state tax purposes; and frontloads depreciation for real estate assets
Cash Flow. Receive regular distributions from the property’s cashflow.
“We predict U.S. multifamily investment volume will reach a record of nearly $213 billion in 2021 (year-to-date volume totaled $179 billion through Q3 2021), well above 2019’s level of $193 billion. For 2022, we expect at least a 10% increase from 2021 to $234 billion." - CBRE Group, Inc
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