Kanat Sultanbekov Talks on Exploring The Benefits of Investing In Multifamily Properties 

Investing in multifamily properties is gaining noticeable traction among investors as a smart avenue to count steady cash flow, appreciation of capital and enjoy lucrative tax benefits. According to Kanat Sultanbekov, compared to putting money into volatile investment vehicles like stocks, bonds, and cryptocurrencies among others, investing in multifamily properties offers a variety of attractive benefits which is driving an increasing number of investors to multifamily property investing. 

Sounds appealing… but wondering about what multifamily investment is. Well, to be precise, multifamily realty investment involves procuring and managing residential properties that house multiple units, such as multiplexes, condominiums, and apartment buildings for rental property businesses. Navigate with Sultanbekov, to explore the multiple benefits of this form of real estate investment 

Solidifying Passive Income Source 

Possibility, the most appealing factor that draws the attention of real estate investors to put their eggs in multifamily housing is that, unlike single-unit property businesses, multifamily housing units offer them a continuous source of passive income through rental properties. Due to the high demand for multifamily housing, investors are negligibly vulnerable to experience chances of vacancy which is a common incidence in single-unit properties. 

With so many families generating rent, even if a single unit remains vacant for a few months, earning from the other units will counterbalance the loss. The steady cash flow also facilitates investing money in similar types of properties in different geographical locations and consolidates the passive stream of income.  

Economic Than Managing a Single-Unit 

Management of multiple renters within a single complex tends to be more affordable compared to administering numerous single-unit tenants scattered all across the city. Simply put, all property management-related expenses, like maintenance, cost of amenities, paying salary to the property manager, and other incidental charges are allocated among several borders which minimizes the financial obligations and thereby strengthens the bottom line of the business. 

High Potential of Appreciation 

Being an investor, although enjoying immediate cash flow is not feasible on multifamily properties, however, its value multiplies down the line, especially with the escalation of rental fees in the market. However, to maximize the return on investment, make sure to consider factors like location, the potential of future development of the area, communication, etc. before investing in the property. Also, follow great marketing strategies for driving potential clients looking for rental properties. 

Portfolio Diversification 

Investing in real estate is possibly the most preferred option for investors to enhance portfolios quickly and in a less risky way, says Kanat SultanbekovMoreover by narrowing down the choice of investing in multifamily units compared to single-unit properties investors can spread their risk across multiple occupants or rental income streams. Following this unique approach in diversification is likely to alleviate the upshot of tenant turnover to recessions and thereby works as a safety buffer on investment. 

Enjoy Tax Breaks

The good news for investors in multifamily properties is the opportunity to get rewarded by the government in the form of tax benefits for providing accommodation for the citizens of a particular city. The Multifamily Property Tax Exemption (MFTE) Program is a special drive of the state governments to incentivize this effort enabling the investors to avail multiple tax advantages in the form of relaxation on mortgage interest, property taxes, operating expenses, and passive losses among others.

Demand Stability

With rapid urbanization, demographical change, and migration, the demand for multifamily houses is rising as never before. This sustained demand ensures long-term income through rental properties and wealth building. Regardless of economic slumps or pandemics – as experienced during Covid-19, housing is an essential need for every family which lowers the risk related to disruption of the income stream.   

Like all sorts of real estate investing, multifamily housing carries its unique set of benefits and risks. Therefore, it makes sense to study the market, weighing the pros Vs. cons, and take measures to avoid the risk factors to optimize the return on investment.