Why own apartments? Following are ten reasons to own multifamily. While real estate investing is a contact sport with numerous pitfalls the rewards can be enormous. Positive outcomes require patience, expertise, access to capital and time with equal emphasis on all of these.
Immediate income. With use of reasonable leverage immediate cash flow to investors is the draw to being in this sector. Over-leverage decreases cash flow, sometimes to the point of bringing it to zero. Price, leverage (debt levels), occupancy and rent growth are the big determinants of immediate income.
Eventual (significant) passive income. While no investment is really passive, over time as cash flow increases there is more cash. Thus, cap ex reserves are fully funded with NOI now reflecting true un-obstructed free cash flow.
Read more...Top Ten Reasons to Own Multifamily | Multifamily Insight Blog
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