Multifamily Residences And How They Multiply Your Revenue

Many commercial real estate investors are always on the lookout for properties to being in steady streams of income in between flipping houses. Fortunately, there is one type of rental property which can yield a healthy revenue, tax benefits, and the financial cushion in case of tenant vacancies or turnover: Multifamily Residences.

Multifamily Residences Are Great For New CRE Investors

Purchasing multifamily residences is not restricted to established commercial real estate investors with a lot of working capital. A new CRE investors can purchase a duplex, or convert existing houses into multifamily residences to start generating passive revenue while looking for the next investment opportunity.

More Units Yield More Revenue

In recent years, the market for single family rentals has become saturated. Real estate investors cannot compete with one another without cutting into their own profit margins. Multifamily residences, on the other hand, offer convenience – usually due to location – by giving tenants access to nearby shopping, schools, healthcare, and commutes to work. Additionally, a single unit in a multifamily property can net close to, if not the same, as a single family rental, depending on the amenities.

Multifamily Residences Offer More Financial Security

When tenants move out of single family houses, the revenue stream dries up until new people move in. This waiting period can sometimes take months, especially in a saturated market. With multifamily residences, if one tenant moves out, there is still revenue coming in from the other units, which offers a financial buffer until the vacancy is filled. The more units contained in a multifamily residence, the more revenue generated, and the more security offered when vacancies become available.

Tax Benefits For Multifamily Residences

Many times, towns, cities, and even states offer tax incentives to commercial real estate investors to purchase, renovate, and rent out multifamily residences. These incentives are meant to bring in new businesses, employees, and people spending money in the local economy. Everyone wins. Additionally, there are a number of tax provisions for owner-occupied properties, so a CRE investor living in a multifamily residence may be able to claim a number of deductibles on the yearly tax return.

Finance A Multifamily Residence Today

If you are looking at multifamily residences and need fast and affordable financing, call CounselPro Lending at 1-888-292-3322. Our team of experts can offer a wide range of funding options for purchasing, renovation, or even building a multifamily residence, so investors can start generating multiple streams of income and successfully grow their businesses.

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