Why Apartments
APARTMENT BUILDING INVESTMENTS ARE RED HOT AND HERE IS WHY:
- Lower cost per unit than single family homes in the same area
- Greater cash on cash returns. Traditionally, apartment buildings offer a greater return than single family homes do as rentals.
- More availability of apartment loans with lower interest rates than non owner occupied single family investor loans
- Non Owner occupied single family home loans are restricted in number to a single borrower
- Foreclosures- All of the families who have been displaced because of foreclosures have to live somewhere and the majority will most likely live in apartments
- Investors benefit from the cash flow immediately. With enough invested apartments provide a steady income stream on which one can live comfortably
- Professionally managed by people who are experienced at apartment property management and investor reporting
- Strong demand in metro areas with limited apartment vacancies and high single family home prices
- Provides a good tax shelter of your cash flow and taxes with a tax deferred exchange while you grow your portfolio
- If one sells taxes are far less than ordinary income tax at a current low capital gains tax of 15%
