Multifamily investing is one of the smartest, most lucrative investments an investor can make – and it’s attractive to all types of investors, from beginners to experienced real estate professionals.
Investing in multifamily properties can be a great way to build your wealth. But it’s important to do your homework and understand the risks involved. You need to know what you’re getting into before you buy an investment property.
Here’s why it is a worthy investment:
- You can get started with a small investment
You needn’t have millions of dollars to get started in multifamily investing. You can start with a relatively small investment – as little as 10% down on a property if you use leverage. However, it is advisable to have a larger down payment to avoid being “house poor” and to give yourself a cushion in case of vacancy or repairs.
- You can make a lot of money
While you will need to put in some effort to manage your multifamily property well, the potential rewards are great. Multifamily properties can generate a lot of rental income, and they also have the potential to appreciate over time.
- It’s a relatively safe investment
Multifamily properties are generally considered a fairly safe investment since they are not as susceptible to market fluctuations as other real estate types. And, if you do your homework and choose a good location, your multifamily investment should provide you with a steady stream of rental income for years to come.
- You can get help from a property management company
If you don’t want to be hands-on with your investment, you can hire a property management company to manage the day-to-day tasks of running a multifamily property. This can give you the peace of mind of knowing that your investment is in good hands and free up your time to focus on other things.
- There are tax benefits
Investing in multifamily properties can offer some significant tax breaks, which can help to offset the costs of owning and operating the property. These tax benefits can include deductions for mortgage interest, property taxes, and repairs and maintenance.
- You can borrow against the equity in your property
If you need to raise cash, you can usually borrow against the equity in your multifamily property. This is called a “cash-out refinance,” It can give you the funds you need without selling your property.
- You can add value to your property
Some ways to add value to your multifamily property can increase its rental income and market value. Some simple improvements, such as painting and landscaping, can make a big difference. And, if you make more significant renovations or additions, such as adding a swimming pool or fitness center, you can increase the value of your property.
- You can sell when the time is right
If you need to sell your multifamily property for any reason, you should be able to do so relatively easily. Multifamily properties are in high demand, and there is always a pool of potential buyers looking for investment properties.
Multifamily properties offer a lot of advantages to investors. If you’re considering getting into real estate investing, speak to MarketSpace Capital about a multifamily property today. They will help you make the most of your investment.