Multi Family Properties
A 1031 Multi Family investment is What You Need
When it comes to choosing a 1031 Exchange replacement property, a multi-family property should be your first choice. The reason is simple – a multi-family investment offers numerous benefits such as:
- Sustainable growth in the real estate marketplace.
- A steady source of positive present and future cash flow.
- 1031 Multi Family investment provides numerous tax advantages.
- 1031 Multi Family investment provides equity appreciation over a period of time.
- Multi Family investment is generally less risky than most other real estate investment. As interest rates are historically low, it is an excellent environment for both buyers and sellers.
There is no doubt that 1031 Exchange investors receive many other benefits in addition to the advantage of tax deferment. However, whether a 1031 Exchange would be profitable for you or not entirely depends upon the type of replacement property you acquire. Things like the property’s location, size, infrastructure, etc. play a vital role in deciding the present and future cash flow.
Let’s consider an example. Bob, a 1031 Exchange investor, decides to sell his small retail property and enter into a 1031 Exchange. He identifies and acquires an industrial property, much bigger than his relinquished property, in the hope that the new property would generate more revenue. However, just because of the fact that the relinquished property was located at a prime location, whereas, the replacement property was situated in the countryside, the new property (replacement property) failed to generate more revenue than the old one (relinquished property). Therefore, as a 1031 Exchange investor, you must know what kind of property you want and also where it is located.
For consultation and assistance regarding multi family properties 1031 exchanges, you can call – 888-993-2835 or email us at info@1031Xchange.com