Take Strides Toward a Better Future
You own multiple single-family rental properties (SFRs) and have reaped the benefits of increased cash flow and equity growth. However, your portfolio has recently started to level out— and you dislike the feeling of alarm that comes with seeing your progress plateau.
So what steps can you take to accelerate your returns and keep your investment engine running smoothly?
Let’s discuss the additional revenue streams that are available and how utilizing them moves your portfolio— and your sense of accomplishment— even further than you ever imagined.
Strategy #1: Investing in Multifamily Investment Homes
One reason to consider this option is if you have already maximized your residential agency loans and are looking for additional real estate investment opportunities. Multifamily housing plans (i.e. luxury apartments, town homes, and duplexes) also make excellent options for experienced investors looking to earn greater profits, by investing in an additional asset class.
Benefits of Owning a Multifamily Investment Property
- Increase in Cash Flow: With more tenants under one roof, there’s more cash flow produced from monthly rents.
- Tax Advantages/ Appreciation: Multifamily rental ownership comes with many of the same tax incentives that come with owning a small business, and you have the ability to write-off operating costs (and other expenditures), while also recouping money by reporting depreciation. What’s more, multifamily units have a reputation for either holding or gaining in value.
- Increased Renter Households: The rise in renters is imposing. In fact, household formations have been heavily skewed toward renters over the last 9 years and since 2007, 8 million renter households have been formed (while owner-occupant households have decreased by 1.8 million), according to Freddie Mac.
Strategy #2: Utilize a 1031 Exchange for Under-Performers
A 1031 exchange can serve as a convenient way to perform “quality assurance” on your portfolio. When you use one, you’re able to get rid of any under-performing assets in your portfolio.
Here’s how it works: you take the equity in one of your existing investment properties and roll it over to purchase a more favorable, higher-yielding property or properties. Besides having the potential to increase your overall returns, this option is even more advantageous when you consider how HomeUnion handles it for you, from start-to-finish.
Benefits of a 1031 Exchange
- Defer taxes when you sell your existing investment properties
- Potentially build a larger portfolio. How? By freeing up more available capital. Here’s an example of how this works: Say you bought a home for $250K, it’s now worth $500K, and the loan is also paid off. When you go to sell, you stand to make $500K cash (plus whatever the appreciation value of the home amounts to). With so much liquid capital, you can now purchase multiple investment homes. Imagine the value in getting paid monthly rent from 5 or 6 different sources!
- Generate greater amounts of income, by replacing underperformers.
- Convenient when you work with HomeUnion, who facilitates a 1031 exchange partner and helps you complete the steps in time to use this funding method.
Strategy #3: Add Ease to Your Advanced Real Estate Portfolio
Isn’t it a chore having to deal with multiple companies (and agents) when it comes to acquiring and managing your properties? Tired of having to coordinate with multiple contacts across various property management companies? All of this correspondence isn’t necessarily productive! When you hand the reigns of your investment over to HomeUnion instead, you get an all-in-one solution… and with your busy modern life, it doesn’t get much better than that!
More specifically, our clients rely on the fact that, instead of having to hire a long list of separate entities (like a realtor-agent, contractor, etc.), and perform tedious details like research, acquisition, and management, they can count on our team of experienced professionals to do it all. With us, both your portfolio and investing future are in expert hands, as we:
- Identify the best potential investment properties
- Quickly carry out the entire acquisition process
- Provide you with expert property management after closing
Contact HomeUnion Today
Here’s to adding even greater distinction to an already distinguished investing career. Inquire how you can add multifamily rentals to your portfolio by calling 888-276-0232 or by scheduling a consultation today.