Why Multi-Family?

Why Multifamily investments could be your key to great wealth

Our entire life we are told the same thing; go to school, get a job, buy a house and spend the next 30 years working to pay for that house and one day it will pay off. Feel me?

Living in apartments most of my adult life, I dreamed of one day owning my own home. And then when I was 30, it happened! I purchased my first house. I was on my way to freedom. Or so I thought. I thought my financial whoas would be over. Boy was I wrong.

The biggest misconception is when you own and live in a single family home that it is an asset. An asset is something that makes you money. If you are spending money each month for furnace repairs, home repairs, mortgage payments... this is a liability.

Investors in the know are turning their sights on the multifamily sector that offers huge potential for returns and cash flow - and it isn’t just for big business and corporate investors. You too can grow your wealth by investing in multifamily real estate and today we will cover some of the appealing reasons why you should.

What is multi family?

Multifamily properties are composed of multiple separate residential living spaces. This ranges from a single family home with a legal in-law suite, duplexes, triplexes, apartment buildings and everything in between.

Generally, these investments work a lot like your standard residential investment, they appreciate over time as the mortgage is paid down. However, rather than a single unit and a single source of rental income that is to cover the mortgage payments and capital expenditures, multifamily properties offer multiple streams of rental income, which can make a huge difference in your returns and cash flow capabilities.

Though you may face some new challenges when looking to expand your portfolio with multifamily properties, there are also a number of benefits that should be considered.

Here are three benefits in particular that are most pertinent for investors.

Number One

Number one would be strong cash flow that you don’t find in single-family homes and many other types of real estate assets. Multifamily is incredibly strong when it comes to cash flow. The more units, the lower the price; economy of scale.

Number Two

It's also incredibly stable in economic downturns. We saw that happen during COVID and over the past two recessions when multifamily outperformed all other real estate asset classes. It's not always about how your investment does in the good times – you also need to focus on how your asset performs in the bad times.

Number Three

Tax benefits. Through cost segregation and depreciation, multifamily investors can take advantage of a wide range of tax credits to minimize their tax liability and put more money in their pocket to spend or reinvest.

Not sure how to get started?

You can invest in multifamily properties, even with little or no experience with other real estate investments. I started my portfolio with a single condo because that's what I thought I knew best. Single family that I could manage myself. But, I quickly ran into issues: the cash flow was not strong, financing was incredibly challenging, and scaling that portfolio felt like I was banging my head against the wall. I was investing in something that was taking me away from my goal, not closer to it. Multifamily avoids all of those issues.

For those looking to get started in multifamily investing, there is no shortage of opportunities. For one, properties in the multifamily segment come in a variety of different styles offering numerous price points. And, when it comes time to financing, it can often be even easier to secure a loan than with a single-family home. This is due to the increased cash flow potential of multifamily properties.

Furthermore, more and more people are immigrating to North America and the multifamily segment is increasingly popular as cities grow and become more densely populated. Investors can find multifamily properties in nearly any market, adding even more depth to the range of options and strategies available to multifamily investors.

The best time to buy a home is always five years ago. - Ray Brown

If you are on the fence or not sure how to get started, don't wait another 5 years, book a complimentary call and lets see how we can work together today!