BENEFITS OF INVESTING IN MULTIFAMILY APARTMENTS

ECONOMIES OF SCALE

  • Fixed costs are spread across several units.

  • Repairs and improvements can be made on multiple units at a time with similar materials.

  • Vacancy impact can be minimized with more units.

TAX BENEFITS

  • Tax benefits may include:  depreciation, property taxes, interest on mortgage and other operational expenditures for the property.

  • Property sales are typically long-term capital gains, which are taxed at a lower rate.

FORCED APPRECIATION

  • Unlike with stocks, we can directly increase the value of the property as well as increase the income streams from the investment.

HIGHER CASH FLOW

  • The purchase of many units at a time typically means paying a lower price per door than with  single family homes, duplexes, and fourplexes.

  • Having more units allows for cheaper maintenance and operational costs per door.