8 Reasons To Invest in Multifamily Apartments

multifamily tips real estate investing Jan 10, 2022

1. TRACK RECORD

Few real estate asset classes have demonstrated the consistency & predictability of that seen in multi family housing.

2. ESSENTIAL NEED

Good times & hard times alike; people will continue to prioritize clean, safe & affordable housing options close to where they work

3. AGING INVENTORY

An increasing number of multi family apartment buildings are coming to the end of their useful life. As these buildings age, it forces more and more units off the market at a time when housing options are already limited. High demand and low supply pushes prices higher.

4. REPLACEMENT COST

Do you remember what properties cost 10, 20 or even 40 years ago? As prices of land, labor and materials continues to increase so does the cost of new construction. This is another reason why well run and cared for multi family apartments are an attractive asset class.

5. INFLATION HEDGE

Case in point with the replacement costs of apartment buildings; cash flow producing multi family apartments outperform a whole host of other assets as in many cases landlords are able to increase rents as their costs increase overtime.

6. CASH FLOW

Imagine having dozens or hundreds of tenants paying you on the 1st of each month. That is the beauty of owning multi family housing.

7. MORTGAGE PAY DOWN

Lenders love real estate & will finance a large portion of the purchase price at some of the lowest rates they offer. Your tenants will pay down the mortgage and build equity for you over the long term.

8. FORCED APPRECIATION

Multi family allows you to create appreciation through sound financial & operational management of the property. Unlike single family homes which values are mainly driven by the market and what people will pay; apartment buildings are largely valued by the net income they generate.

 

There's many reasons to invest in apartments - what are yours?

 

Marcin Drozdz



The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax, or similar matters and should not be relied upon for such purposes. www.marcindrozdz.com is not a financial or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. www.marcindrozdz.com, its subsidiaries, and affiliates are not responsible in any manner for direct, indirect, special, or consequential damages however caused arising from your use of the information contained herein.

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