7 Things That Makes Multifamily a Unique Investment

1.CASH FLOW

Cash flow on multi-family properties is more consistent than that of a single-family home in that you have multiple tenants paying rent. With single-family homes, one vacancy equals 100% vacancy. With a large multi-family, it takes more vacancies to put a dent in the bottom line.

2.LEVERAGE

Lending institutions consider multi-family to be one of their safest asset classes to lend on. For this reason, it’s much easier to obtain financing, even non- recourse lending on a multifamily property.

3.APPRECIATION

Single-family homes are valued on market comparisons while multi-family is valued based on a multiple of the N.O.I. (Net Operating Income). Appreciation can be strategically forced by increased rents from capital improvements and/or reducing expenses through more efficient management.

4.TAX BENEFITS

Ownership in a large multi-family property can provide you with unparalleled tax sheltering benefits that can greatly offset or eliminate your personal income tax liabilities.

5.EQUITY GROWTH

With larger loan pay downs from multiple tenants, it’s easier to expedite increases in equity and overall wealth creation.

6.STABILITY

Multi-family real estate’s track record is unmatched in resiliency and resistance to market downturns. The default rate on Multi-family is around 2% compared to 8% with single-family investing.

7.MARKET TRENDS

The data is undeniable. There is a huge demographic shift from homeownership to renting.

Learn more about multifamily investing: https://tridentmultifamily.com/