Why is Multifamily Real Estate Investing a Sound Decision for Passive Income ?
Multifamily real estate can act as a catalyst for your investment career . And , this is not without the reasons :
1 ) Easier Availability of Finance
If you think the enormous size of multifamily properties will call for difficulty in arranging finances , don ' t let their size befool you . Multifamily properties are more accessible to finance than singlefamily homes . The price of multifamily properties is not the deterrent in fetching easy financing options . These properties are more likely to be approved by financial institutions like banks for a loan because these are more likely to generate cash flow month after month . This guarantees timely loan repayment .
2 ) A More Fabulous Kick Start
Acquisition of multifamily real estate is a better investment with low volatility , which could be your fantastic endgames strategy too . You will retire with multiple streams of income . If you want to start small , in a small multifamily property acquired , you can live in one of the units and pay down the mortgage you receive from the tenants residing in other units . Besides rent , you will earn appreciation on your investment capital .
3 ) Light Years Ahead Of Stock Market Return
Multifamily syndication returns have significantly gone down in the last two years . Yet you can lay hands on a 12 13 % average annual return , which is significantly higher than stock market returns .
Additionally , you are not even paying taxes ( decreased taxes are the most extraordinary relief anytime ), which means you are light years ahead of stock market returns .
4 ) Enjoy Cost Segregation Benefits
Under the cost segregation , multifamily real estate investors enjoy
reduced current tax liabilities , which imply upfront cash flow . Without cost segregation , multifamily rentals are depreciated straight line for 27.5 years . However , with cost segregation , the depreciation on specific real estate rentals ' components is faster ( like in five , seven , or 15 years ). The faster depreciation means you can save / make more money with depreciation and cost segregation applicable in multifamily investment projects .
Additionally , the government taxes income from multifamily investment properties at a passive income rate . This means no employment taxes .
Conclusion
I hope this article will help you embrace passive income investing for attaining financial freedom the soonest . Time is to start today , you can easily partner with someone or invest passively completely . What steps will you take in the coming weeks to create passive income ? For additional articles by Dr . Mishra , please visit his website at : www . bluoceancap . com .
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