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Why invest in a multi-family property

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Are you considering investing in real estate in Decatur, GA or its neighboring communities? There are many  good reasons why you should put your money in a condominium or apartment instead of a single-family property. Here are some of them:

  • Easier  to finance
  • While an apartment or condominium building costs so much  more than  a single-family home, acquiring financing for one is also generally easier. Multi-family properties are viewed as less risky investments than  single- family properties, with  less chances  of foreclosure. As they can accommodate more tenants, the effects of a vacancy  or two on the property’s cash flow can be mitigated by the income  coming  from the occupied units.   On the other  hand, a single-family property makes  zero income  when  its lone tenant leaves.

  • Easier  to manage
  • A property with 10 or more units  can be managed by a single property manager or management company. If you have 10 individual rental homes, you’ll most likely need more than  one manager. A professional manager can relieve you of the burden of managing the rental’s day-to- day operations, including maintenance, tenant issues, rent collection, tenant screening, and so on. If you own only one or two single-family units,  it may not be cost-efficient to get the services  of a professional manager. With the bigger  income  of a multi-family property, professional management fees will not eat up too much  of your profit.

  • Continuous demand
  • Multi-family housing caters to the needs  of a growing population, particularly in booming cities and neighborhoods like Decatur and Alpharetta in Georgia.  People  rent out of necessity – they may still be building their savings to buy their own homes,  or the housing cost in the area may be too steep for their budget. Condos are also gaining popularity for the convenience and amenities they offer. They’re in high demand among millennials who are just starting to establish their careers,  and among baby-boomers who are looking  to downsize and move to a

    smaller,  easier-to-manage space.

  • Value retention
  • With the constant and increasing demand for apartments and condos,  you can be assured that the property will keep and even enhance its value  over time. This is especially true if the property is in a good location  with  easy access to business and entertainment centers,  schools, and public

    transportation. It’s important, however, to keep the property well- maintained and in good condition, and to update its features to make it attractive to new renters and keep existing  ones happy.

  • Tax advantages
  • Multi-family properties address a housing need, so the government rewards and encourages investors with  tax incentives.

    • You can write  off the expenses related to operating a property
    • ou can depreciate the building and as many  of the building’s features as possible,  and write  off part  of the depreciation
    • If you sell an apartment building and use the proceeds to buy another investment property, you can defer taxes on capital  gains and depreciation recapture

  • Positive impact on the community
  • Multi-family property developments can add  vitality  to the community. With more people moving to the area for the added housing opportunities, commercial establishments and businesses often follow suit, and this means  more jobs and more economic  activity  in the area.

Are you looking  to invest  in a multi-family property in Decatur, Alpharetta, East Atlanta, and other  communities in DeKalb and Fulton  Counties? We can help. Contact us here  or call us at (404) 321 – 0030 or send an email to KarafotiasRealty@KarafotiasRealty.com.