Why Passive Investing?

Economies of scale in multifamily investing refer to the cost advantages that arise from operating larger properties with multiple units. Managing multiple units in one location can reduce per-unit operating costs, such as maintenance and property management expenses, shared amenities, marketing and leasing efficiency, and increased resilience leading to increased profitability.

During inflationary periods, homeownership may become less affordable for many people, increasing demand for rental properties. This can lead to higher occupancy rates and stronger rental income. In addition, real estate generally appreciates in value over time, particularly during inflationary periods. The physical asset tends to retain or increase its value, countering the effects of inflation on capital.  There are also tax benefits such as depreciation, and operational cost pass-through items that can help mitigate the impact of rising expenses.

Real estate investors can take advantage of various tax benefits, including depreciation, mortgage interest and operating expense deductions, 1031 exchange reinvestments, cost segregation, and other expenses that can offset taxable income. This offset results in maximization of cash flow and overall returns.

Multifamily properties often appreciate in value over time, benefiting from market demand and the potential for renovations to increase property value.

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Investors can increase value through renovations or improved management practices, leading to higher rents and increased property value.

In many areas, demand for rental housing, especially multifamily units, remains strong due to population growth and changing demographics, providing a stable, long-term investment. The National Multifamily Housing Council (NMHC) cites strong demand trends in multifamily real estate.