Commercial real estate investors are always looking to acquire properties that will give a healthy return on investment. More people are looking for housing that requires less upkeep, which is creating a perfect situation for both property investors and tenants alike.

Multifamily Properties Generate More Revenue

A few years ago, single-family rentals were a rising trend. Now the scale has shifted, and more tenants are seeking out multifamily rentals, ranging from studio apartments all the way up to luxury rentals. With the right property, commercial real estate investors can charge rent per unit that is equivalent to what a single-family rental would generate per month. Multiply that amount by the number of units, and it is easy to see why multifamily properties are so attractive.

Multifamily Properties Create a Financial Cushion

When a tenant moves out of a single-family rental, revenue grinds to a halt until a new tenant moves in. By contrast, multifamily properties create a revenue buffer. If a vacancy is created in a multifamily property, revenue might decrease temporarily, but there is still rent coming in from the other occupied units. In a way, multifamily rentals are financially secure investments.

Tax Breaks for Multifamily Rentals

It is not unusual for cities or states to offer tax breaks to commercial real estate investors who provide multifamily housing. The reason behind this is that when people move to an area, they put their kids in local schools, they buy locally, and they usually work locally. In short, they bring income revenue to a state or city. Offering tax incentives to commercial real estate investors can offset the cost of maintenance and renovations. Additionally, if the multifamily property is owner-occupied, then the IRS offers a wide range of deductions to property owners, so long as the live on the premises.

Financing for Multifamily Properties

Golden Century Lending offers a variety of funding options to commercial real estate investors who want to purchase, renovate, or even build multifamily rentals. Contact our offices today learn more about our multifamily property financing solutions.