Multi-family real estate investment is a wise investment move for even the beginner investor. These properties offer a multitude of benefits which make them an attractive option for your real estate portfolio, even for a first time “home buyer.” Due to the density of population that can reside in multi-family real estate, it is considered the most affordable option for renters, who come in all age groups, meaning that demand for this sector of the housing market will always remain high. As an investor multi-family properties offer a source of reliable passive income to meet your long-term goals. We’ll cover 6 reasons why you need to start investing in Salt Lake City multi-family properties.
Lower Unit Costs
Because of the shared expenses across the units in a multi-family structure, such as the roof, walls as well as many of the systems within the building, such as plumbing, the cost to build per unit is lower. What this will mean for you when you begin investing in Salt Lake City multi-family properties is a lower initial cost per unit for your investment dollar than other types of property. Because foreclosures are much rarer in this sector, lenders typically charge lower financing rates, saving you even more money over the long term. Because of the shared structural aspects in addition to all amenities being shared, maintenance tasks are lessened per unit, thereby lowering the overall annual cost of maintaining the investment. This money-saving advantage attracts many Salt Lake City investors to multi-family properties.
You can certainly start small, with a property such as a duplex, and house hack, or live on one side, while collecting rent from the other, covering most or all of your own housing expenses, thereby saving money. By residing in the property, you will also qualify for the benefits of an FHA loan and this is another great reason to start investing in Salt Lake City multi-family properties. One of the advantages of the FHA loan, dependent upon your credit rating, /., is the generally very low-interest rate and the requirement of only 3.5 percent down on the property. For those putting the lowest amount possible down, remember that there will be costs for mortgage insurance premiums (MIP).
As for your passive income stream, the more units per property, the overall negative financial impact of vacancies is lessened as well. The best part of all, other people are paying your mortgage and expenses, while building your equity. Whether your focus in multi-family properties lies in smaller properties, those with two to four residential units or larger multi-family investment properties, with five or more units, benefiting from the potential for high earnings through this type of investment far outweighs the risks. This is a major reason many choose to start their real estate investment business with Salt Lake City multi-family properties.
As you continue to purchase units your investment leverage grows, allowing your real estate investment business to continue to increase. This means you have the potential to fill your investment portfolio with more and more multi-family units over time, meaning even more passive income and a better standard of living in the future. Due to the ability to locate and purchase a property with multiple units in the same time frame it would take to find and purchase a single-family property, there is an innate quickening of growth in your portfolio by investing in Salt Lake City multi-family properties
A major reason many start investing in Salt Lake City multi-family properties are the tax incentives. Expenses for maintenance and other costs you may incur from the rental property as well as a portion of your mortgage interest can be deducted from your investment income. Depreciation is a number calculated based on the age of the structure, allowing the owner to make a predetermined amount of the value as an expense, out of the deterioration which occurs over a given period of time. This amount is deducted from the income and therefore not taxed.
Let us here at YourPriceMyTerms.com help you develop a plan to meet your short and long term goals. At YourPriceMyTerms.com, we take the time to listen to your needs and concerns. While it may seem complicated, investments in Salt Lake City multi-family properties all come down to the numbers and what they will mean to achieve your goals as an investor, both over the long and short term. Additionally, when it comes to real estate, the location should never be last on the list when shopping for an investment property. At YourPriceMyTerms.com our experts will make the process easy, helping you find the best property for your dreams and guiding you each step of the way. Your real estate investment success is our job! Why not get started on the road to a better tomorrow with YourPriceMyTerms.com today? Send us a message or call (801) 441-2800 now!