Investing in residential real estate is a lucrative proposition if you go about it efficiently. There are several advantages provided by multi-family properties, which allow you to keep track of your investments and enjoy certain tax advantages. Investing shouldn’t be just a one-off adventure but should involve a comprehensive approach to maximizing value. Look at properties that are multi-family and can give you an edge in real estate investing.
One plus to buying multi-family properties is that it keeps management all in one place. Instead of owning a residence in one neighborhood and a second one in another location, you basically have a “one stop shop” for all of your investments. That makes property management easier and will help you keep tabs on what is going on with your investment. In addition, if you live on the premises, you are likely to attract more conscientious tenants. People who know they may be apt to be disruptive or may have family members who can damage property are not the kind of people who want to live in the same building with their landlord. Living close to your investment is a deterrent to negligent tenants, and will help you deal with a negative situation promptly.
If you upgrade multi-family properties, it can be like a tide that lifts all ships. An improvement to a building upgrades the apartment you live in as well as your investments. This improves efficiency and reduces costs. An easy way to add value to all of your investment at once is to make a substantial improvement. There are also tax benefits provided by this setup. Improvements on the building you make to increase your own comfort may be deducted from your taxes because they are an expense incurred as a landlord if the improvement benefits tenants as well. You can also keep track of wear and tear and depreciation, which may be deducted in some circumstances.
If you live on the same premises as your tenants, you can facilitate communication that can prevent wear and tear from occurring in the first place. If repairs are made promptly, they will not spin out of control and create permanent damage. Investing in multi-family properties gives you a window (maybe literally) into your investments and how they are faring on a day-to-day basis. You can also get an idea of the neighborhood by actually living there and get some good leads on additional valuable investments as the opportunities arise. In addition, multi-family property investment allows you to be public spirited and improve an entire area, rather than just one home or apartment.