Key Reasons to Consider Investing in Multi-Family Mixed-Use Properties

 
 

There are always potential risks and rewards in investing in real estate property. Many people fear taking the first step in this vast business. A great option for new and inexperienced real estate investors is a multi-family mixed-use property.

Learn more about the key reason to consider investing in one.

Source of Passive Income

Real estate investments are already a reliable source of passive income. Similarly, investing in multi-family properties brings in additional money without the investor doing much.

The investor doesn't even need to be directly involved; they can hire a property management company that can take on the heavy lifting in their place. This is beneficial for those investing in and managing mixed-use properties for the first time.

Low Risk

Although real estate is a worthwhile investment, not all the purchases pan out, those thinking of investing their own money into the property will hesitate. A multi-family property is a relatively "safe" option in the real estate asset class.

This is because even when there's economic turmoil, people will still need a place to live. During recessions, many people are forced to sell their homes. The great recession crisis of 2008 caused over six million to become homeless.

In such cases, people look for affordable places to rent to get a roof over their heads. The time it takes people to get their credit back up isn't short either, so multi-family properties stay high in demand.

Fewer Loans

Other types of real estate property, such as five separate family rentals, will take five loans, while the multi-family properties can be purchased with only one. There are also other options than traditional loans, such as private financing offered, especially for mixed-use properties.

The more loans there are, the trickier managing them gets over time. This is another reason than the safety net it offers that first-time investors, especially, should consider multi-family properties to add to their investment portfolio.

Insurance is Simple

As the number of units grows, the insurance policy tends to become more complicated. It is also getting more complicated when considering the various amenities the property will have.

However, insurance companies now offer a 'blanket' policy that covers all the units of multi-family properties in one in one. This makes the building, its finances and insurance easy to manage.

Tax Benefits

Like other lived-in real estate investments, mixed-use properties are highly advantageous in getting the investor tax cuts. Multi-family properties' depreciation offsets a substantial portion of the rental income collected yearly, making this asset more attractive to new and seasoned investors.

Learn more about Investing in Multi-Family Mixed-Use Properties

Insula Capital Group is an investment company based in New York. Their loan options offer a variety of rental properties loan programs, fix and flip financing, new construction loan programs, and multi-family fixed used loans. 

Contact them for more details.