Why Invest in Multifamily Real Estate?
A resident of California, Frank Roessler is the founder and president of Ashcroft Capital, LLC. Through his nearly ten years of experience in real estate, Frank Roessler has gained acumen in the industry, with his expertise focused on multifamily real estate investment.
Multifamily real estate comprises a wide range of residential properties including townhouses, condominiums, and apartment buildings with at least two housing units adjacent to each other either horizontally or vertically. At times, multifamily properties may take longer to sell when on the market due to a limited pool of buyers. However, there are many advantages of investing in multifamily real estate.
The foremost advantage typically includes a higher return on investment than on single family properties, as the rent from more than one unit is helpful in reducing the risk posed by vacant units. Therefore, even when one unit is vacant, other rented units help defray the expenses of owning this temporarily unproductive unit. Meanwhile, it is also comparatively easier to get lenders to finance multifamily complexes, as there is a greater potential for monthly cash flow than in single family properties. Investing in a multifamily property can also bring about tax breaks. Providing housing to residents of the city is encouraged by many local governments and hence, owners are often rewarded with tax deductions and other incentives.