5 Reasons to Invest in Apartment Real Estate
Updated: Oct 11, 2020
1. Everybody needs a roof! - In a up or down economy, people always need a place to live. Multifamily is the least risky real estate asset class, and all demographic indicators suggest it will be a strong market for years to come. 2. Who wants Mailbox Money?? - Apartments can be a great source of passive monthly cash flow (so you can make make money without doing more work). Rather than having to buy several single-family rentals over time, you can make more cash flow with the purchase of just one building.
3. Income Diversity? - Apartment investments are a good hedge against inflation and be a good hedge against economic volatility. Apartments traditionally have more stability than stocks. This diversifies your portfolio, allowing you to benefit from owning rentals in markets that offer higher cash flow or have higher demand while hedging against negative changes in a market like a loss in job opportunities, high vacancy rates, or other factors that would affect the rental income.
4. Who Loves Taxes?? Apartments create multiple tax shelters for our investors. The US Tax code benefits real estate owners in a number of ways including no limit mortgage interest deductions and depreciation accelerations that can shield a portion of the positive cash flow generated and paid out to investors.
5. No Late night fix-it calls! No day-to-day management by using professional property managers. Property expenses and holding costs relating to an apartment building are typically far less than a portfolio of single-family rental properties because there are multiple units under one roof.