Why Invest in Multifamily Properties? Real Estate Investment Specialist Travis Cadman Explains


Multifamily real estate has the potential for exceptional returns for the passive investor – beyond what can be expected from mutual funds or stocks. In the following article, Travis Cadman discusses the reasons why investors should consider multifamily properties. Travis Cadman is the co-founder of Investar USA.

Anyone looking for a solid investment return should seriously research multifamily property assets. Here are a few reasons why you should add multifamily property to your investment portfolio.


  • Use leverage to maximize returns. Because investors can (and typically do) mortgage multifamily properties rather than invest their own funds, they maximize their equity returns.



  • Multifamily property investment offers tax advantages. Tax benefits for multifamily real estate investors include capital gain tax deferrals (1031 exchange), passive income tax treatment, and depreciation.



  • Control over investment. Investors in stocks have no control over the value of their assets. Multifamily property investors can make improvements that increase the asset value and investor returns.



  • Hedge against inflation. Real estate acts as an inflation hedge since its overall value keeps pace with the strength of the dollar.



  • Shelter against economic downturn. Affordable multifamily rentals tend to be in demand regardless of the state of the economy.



  • Demand exceeds supply. The shortage of affordable multifamily rental units ensures consistent occupancy with a well managed asset, and city and state governments offer valuable incentives to property investors.

These are only a few of the benefits to multifamily property investment. While multifamily property seems like a major venture, working with a real estate investment group can offset many of the management duties that new investors find daunting. Find a strong opportunity in an expanding market, and you can grow significant wealth in a relatively short time!

Travis Cadman is a real estate investment specialist in Phoenix, Arizona.

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