Firstly – cashflow. You invest in multifamily because of the predictable cashflow. So, we look at rents, stable rents, being able to get strong market rate rents, turning units and re-leasing. So, from a cashflow perspective, multifamily is so attractive because it’s cashflow rich.
Lowered risk. One of the things that multifamily presents versus other asset classes like retails, office and hospitality is even during a recession or a downturn, people need a place to live. So, I love that about the multifamily segment.
Related Link: Multifamily Real Estate Investing for Beginners
One, because it poses less risk from an operational standpoint of being an investor in them, but also the lending environment is very favorable because it’s considered a safe investment.
Passive income is one of the other benefits that multifamily presents. When you have a multifamily investment, you can hire people like us at Smartland to either manage a property so that you’re generating additional passive income and not having to lift a finger,
And those are the benefits of buying commercial real estate where you have a successful manager that’s operating it and you’re able to participate in that passive income, and it doesn’t have to take your full time and attention.
Real estate is one of the most tax-advantaged asset classes. So, from an investment standpoint, when you invest in multifamily communities, you’re able to participate in the tax benefits that they offer.
Being part of a tax-advantage approach is a really great way to enhance your overall portfolio and offset some of the high income that you may have.
One of the other things from a risk standpoint is instead of just having one single family resident where if one tenant leaves your occupancy guest to zero, when you’re across multifamily community such as like one hundred unit, if you have 10 tenants that are vacant, you’re 90 percent occupant, and you’re still at positive cashflow.
So, from that standpoint, it present less risk and it allows diversification across tenants as an asset class is one of my favorite asset classes.
