Nowadays, everyone is always looking for new ways to add to their investment portfolio. How do you get the edge and keep yourself comfortable during your retirement years? One oft-overlooked way to do this would be by designing a winning multifamily investment portfolio. One of the main ways to do this would be by acquiring multifamily properties. How so? Here are some of the advantages of this practice:
They Are in High Demand
Buying multifamily properties is something that is very trendy among investors these days. Because multifamily is a building that consists of several units where more than one family can reside, it is appealing to investors that just one single transaction could add so much to their portfolio. Moreover, the investor could very easily live in one of the units themselves, reaping the benefits of both homeownership and real estate investing.
This Type of Investment Will Gives You Solid Cash Flow.
Perhaps one of the best things about multifamily property investment is that it will give you solid cash flow. This means that you can seriously cut down on your mortgage expenses if you choose a duplex over a typical family home. For example, if you purchased a $250,000 duplex and you were the sole tenant, you would likely be paying upwards of $2,000 per month. However, if they went with a $250,000 duplex instead, they would be able to get rent for half of the property and that would likely cut their mortgage down to a thousand or less.
Multifamily Investing Can Help You Build Wealth and Equity
Even though it can take a hefty down payment to engage in multifamily investing, it can help you build plenty of equity as quickly as possible. First of all, it will you will often have the ability to access a cash-out refinance after just a few monthly payments from your tenants. Additionally, you will have a lot of flexibility because of this and there are often a whole host of tax benefits. It’s simply a win-win either way you look at it.