Multifamily- A better option for your real estate retirement
A multifamily property is a structure that has more than one unit, unlike duplex or a single home, where multiple separate housing units for residents are available in a single building or one complex.
Reduction of housing cost: The cost of a multiplex is higher than a usual house, but the rentals help you in increasing your income, covers the residual cost of living in a separate house than the cost of a multiplex.
Diversity in your assets: A multiplex being purchased at reasonable price and with good location where demography is growing and stable is good for bringing diversity in your money, stocks or investment funds.
Tax benefits: A portion of tax, mortgage, insurance and maintenance will be deductible to the area as compared to the owners of single unit or duplex. The taxes you pay vary from one asset to other, where multiplex emerges as a winner. If you are professional real estate investor, your passive income will reduce your tax obligation of a multiplex, than normal federal tax.
A stepping stone for future: Over the passage of time, the equity in the first multiplex will allow the purchaser to increase in its monthly rental income as well as increase of the value of assets invested. Multiplex complexes increase its value as the total operating income of property improves through increase in rent.
Increasing portfolio in less time: It is a suitable option for those real estate agents who wish to make their portfolio fast and steady in real estate business. It consumes less time, energy and maintenance of the portfolio as compared to the single units.
It takes far more time and efficiency to purchase 20 different single unit houses, choosing their location, making deals, documentation to be done for each of them separately, taxes, dealing with 20 different parties at different places than investing in a multiplex which will save your time and money as well.