{"id":779,"date":"2021-03-13T20:02:18","date_gmt":"2021-03-13T20:02:18","guid":{"rendered":"https:\/\/readyretiree.com\/the-advantages-of-investing-in-multifamily-homes\/"},"modified":"2023-07-07T22:03:39","modified_gmt":"2023-07-07T22:03:39","slug":"the-advantages-of-investing-in-multifamily-homes","status":"publish","type":"post","link":"https:\/\/prorealestateinvesting.com\/the-advantages-of-investing-in-multifamily-homes\/","title":{"rendered":"The Advantages of Investing in Multifamily homes"},"content":{"rendered":"\n
There are excellent reasons to consider Forbes<\/a> reports that one of the most attractive benefits of multifamily investment is the immediate cash flow. In sharp contrast to most other investments, it is not difficult to buy a multifamily home and begin collecting cash benefits in the first month. Depending on the day you purchase a property, you might actually get paid the first day.<\/p>\n\n\n\n There is plenty of money available to purchase multifamily properties. Lenders are more eager to invest in these types of properties than many others since it is considered a low-risk loan. With the risk spread over more than one tenant, lenders feel much more comfortable that they will get paid.<\/p>\n\n\n\n While any individual tenant may lose a job or experience some other life emergency that makes it difficult to pay the rent, it is less likely that two, three or four tenants will all go through some financial hardship at the same time. Getting paid one-third or two-half of the rent is much better than losing 100 percent of your rental income on a single-family rental unit.<\/p>\n\n\n\n There is a reason real estate<\/a> tycoon, Donald Trump, pays little if any tax. Nolo<\/a> reports that a rental real estate business provides more tax advantages than most other businesses. Substantial tax writeoffs on interest, depreciation, repairs, personal property, travel, a home office, insurance, legal services, professional services, employees, and contractors dramatically reduce taxable income. Many landlords pay little if any tax based on significant deductions that offset rental income earned.<\/p>\n\n\n\n There is also a pass-through tax deduction created by the passage of the Tax Cuts and Jobs Act which will allow many landlords to deduct a substantial amount of their rental income or 2.5 percent of the property’s purchase cost. This generous deduction will expire after the year 2025.<\/p>\n\n\n\n1. Multifamily home investment provides immediate income.<\/h3>\n\n\n\n
2. Excellent financing options are available.<\/h3>\n\n\n\n
3. Provides excellent tax advantages.<\/h3>\n\n\n\n