Advantages & Disadvantages of Multifamily Real Estate
There are many advantages to multifamily real estate investing. Some of these advantages include:
· Larger portfolio with one property
· Higher returns on investment
· Lower risk
· Better chance of financing
· Easier insurance
· Tax benefits
· Better property management opportunities
Tax benefits for multifamily real estate include:
· Mortgage interest
· Value depreciation
· Management costs
· Maintenance and repair
· Utilities
· Marketing and sales
· Insurance
Disadvantages of Multifamily Real Estate
Multifamily real estate investing is full of advantages, however, there are many disadvantages to multifamily real estate. These disadvantages include:
· More costly
· Less available
· For more experienced investors
· Intense management needs
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