Why Multifamily Investing is a Must

Here’s why investing in multi-family apartments is a must for growing your future wealth. There are past performance and trends pointing towards the increasing demand for multi-family residential property. Let’s dive into our top 6 reasons.

1. Increasing demand for apartment living and rentals

Millennials, the largest generation in US history about 76 million of them have less desire to own a home due to large student debts, making it difficult to purchase a home. They are the largest pool for renters and renting is a more affordable option. Baby Boomers, about 74 million in this group, a large number are downsizing and enjoy the convenience of renting.

2. Passive cash flow

With multi-family, you earn passive monthly cash flow through the acquisition of well-positioned, stabilized properties. 

3. Reducing your risk

Multi-family tends to be protected during a recession as people downsize to apartment living. Compared to single-family homes, your vacancy risk is spread as you have multiple renters paying down the mortgage. Multi-family syndication deals provide the opportunity to pool your capital with others into high-value assets with potentially high returns while reducing your overall risk.

4. Equity growth

With tenants paying down the principal on the loan, your equity in the property increases which is paid out when the property is sold.

5. Tax Benefits

You can further reduce your earned income tax through the property’s depreciation schedule.

6. Growing your portfolio quicker

Multifamily investing is good for investors who want to build a larger portfolio of rental units quicker than purchasing multiple different single-family homes. For example, investing in an apartment building is more time-efficient than buying 20 single-family homes where you would need to work with 20 different sellers, inspections, loans.

Hope this gave you some reasons to explore multi-family investing and furthering your path to building wealth and passive income.