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Updated almost 2 years ago,
Multifamily strategy and tax strategies
Wondering if the strategy is to do interest only loans on commercial multifamily buildings? Principal payments aren’t going to be tax deductible. Or are you just happy your tenants paid like 90k of principal and all you gotta pay is $10k in taxes. I mean that’s like a 9x return right there.
But if tenants pay principal payments probably could cash out refi faster.
But as we move down the amortization schedule 10-15-20 years. It’ll create more taxable income.
I may have to discuss with a tax advisor. How to get the taxable income from multifamily to be 0%.