Why Apartments Should Be Your Next Investment
There are so many investment choices in the real estate space to pursue, but which one will bring you strong returns, significant tax advantages, greater control and security?
More so than any other real estate class, multi-family properties are arguably the one of the most lucrative real estate investment options.
The plain truth is that apartment complexes generate significant cash flow with even more opportunity to force appreciation and add long-term value over time. Plus, apartments stay in high demand because people need a place to live, and they provide a simple, affordable option for college students, young professionals, singles, older people, low-income workers and temporary residents, demographic segments that will never go away.
When it comes to apartment investing, here are a few keys that successful investors know and have used to unlock the door to significant wealth:
Economies of Scale
Large apartment complexes can have 100+ units available for rent. This means there are more residences covering your operating costs and mortgage, thereby reducing your investment risk. As the number of units increase and more rental income is collected, the operating cost per unit decreases.
Significant Cash Flow
As we mentioned above, the kinds of apartment complexes we purchase typically have hundreds of units rented out each month. More rental units means more cash flow.
Moreover, a modest rental increase across individual units can result in much higher total cash flow. There’s also security in numbers: even if you have a 5% vacancy rate on a 100 unit complex, your bottom line is affected less than it would be in a vacant rental house.
Like most investments, you have to pay taxes on apartment complexes; however, it’s possible to decrease or eliminate the amount of taxable income through tax depreciation.
In some cases, the tax depreciation expense could completely eliminate the annual taxable income.
Learn more about real estate tax benefits in our FREE guide to apartment investing.
Forced Appreciation Equals Huge Profits
With apartment investing, you can maximize the value of your investment and create equity by raising rents, reducing expenses, increasing occupancy, and making strategic value-add improvements.
These actions will add value to the property and increase the selling price when it comes time to extract value from the property upon exit.
One of the Best Investment Vehicles
Apartments are always in demand, are a good hedge against inflation, and offer greater control to investors.
To learn more about the benefits of investing in apartment complexes, download our FREE guide to apartment investing.
Apartment Investing Made Easy with Adams Investor Group
Adams Investor Group, LLC (AIGP) creates real estate syndications by pooling capital to acquire multi-family apartment complexes that meet our criteria.
Founded on the principal of building wealth for others, we provide unique investment opportunities in which our investors have the ability to generate wealth and cash flow through real estate.
We focus on specific types of properties due to their location, stability in various economic conditions, and history of cash flow. We put our efforts toward acquiring and managing these types of properties so our investors reap significant investment returns.
If you’re ready to start investing with AIGP, click “Start Here” below, and you’ll be on your way toward building wealth for your portfolio.