Education
Passive Income
As opposed to stocks, multifamily real estate provides reliable monthly cash flows without the volatility. The last few years have been nothing short of a headache in the markets. One day it’s sunshine and rainbows and the next everything is falling apart. Luckily, multifamily real estate solves the volatility problem by providing passive income through the form of rent. In addition, as opposed to single family homes or smaller multifamily properties, as a multifamily investor you can rest assured that one tenant leaving won’t impact your monthly cash flow as severely. The beauty of all this is that you don’t even have to worry about taking care of the property as we got you covered. We manage our own properties to make the investing process as stress free as possible all the while ensuring our tenants are happy.
Tax Benefits
Tax Benefits
Investing in multifamily real estate offers attractive tax benefits. Depreciation is one of the best real estate tax shelters for investors. Depreciation works under the idea that properties experience “wear and tear” over time. The government allows investors to deduct depreciation from their taxable income which results in generous tax savings. In addition, there is a real estate tax benefit called cost-segregation. Cost-segregation works by allowing real estate investors to make depreciation expense write-offs on parts not covered under the regular depreciation for a period of 7 years. A cost-segregation company is hired and their engineers create a report which allows us to write off additional depreciation. Through the combination of regular depreciation and cost-segregation, you can enjoy tax write-offs that cover your cash flows and even write-off other income.
Inflation Hedge
Inflation Hedge
While stocks and bonds lose value when the prices of good and services rise, multifamily real estate is generally a great hedge against inflation because it holds intrinsic value, is in limited supply, and is a necessity-based asset. Not only do people need a place to live, but multifamily leases can reset at six, nine, or 12 months. When leases reset, it gives us the opportunity to reprice rents as prices increase. In addition, as operators we make sure to create a culture in our communities where our residents have a personal connection with their neighbors and the property staff. All in all, multifamily allows investors to get ahead of inflation and profit when prices increase.
