Investing in real estate can be a lucrative venture, especially when it comes to multifamily properties. Innovative Capital helps our clients navigate the challenges of making smart choices and financing these investments.
Multifamily real estate refers to properties that have multiple units, such as apartment complexes, townhomes, or duplexes.
According to JPMorgan’s Commercial Real Estate Outlook report, multifamily real estate is currently one of the highest performers in commercial real estate investing.
If you are considering investing in real estate, here are three benefits of choosing a multifamily investment property.
1. Steady Cash Flow
One of the most significant benefits of investing in multifamily properties is that each property has multiple tenants.
Having multiple tenants per property creates a steady cash flow – often passive or semi-passive income, depending on if you are utilizing a property management company.
Additionally, this means that even if one unit is vacant, the investor will still receive rent from the other units. This helps minimize risk and creates a stronger, more reliable income source.
2. Tax Benefits
Real estate investors can also take advantage of tax benefits, such as depreciation deductions and the ability to deduct mortgage interest and property taxes.
These benefits can help to reduce the amount of taxes owed, which in turn, can help increase overall ROI potential.
3. Demand Outweighs Supply in Certain Markets
Investing in a multifamily property in a hot housing market creates an opportunity for ROI potential, as well as peace of mind.
For example, while we work with clients all over the United States with Innovative Capital, we are mostly based in San Diego, where we’ve done a large number of deals.
According to Bisnow, the demand for housing in California outweighs supply, which also drives up rent prices. Southern California is an excellent location for multifamily property investing due to the steady stream of people seeking housing in California.
Here are some examples of recently funded deals we’ve made at Innovative Capital:
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Finding a Loan For Your Multifamily Real Estate Investment
Multifamily properties might be an excellent choice for your real estate portfolio.
With increasing bank rates and stricter lending guidelines, it is smart to have expert commercial real estate brokers and loan brokers to help you make the best choice.
At Innovative Capital, we help our clients secure funding for multifamily properties from many different sources with various loan types.
If you are seeking funding for your multifamily property investment, get in touch with us.
Request a quote below and one of our team members will respond to you shortly.