Kanat Sultanbekov Discusses a Few Reasons Why Investing in Multifamily Real Estate Is a Good Idea 

No matter whether the market is up or down, real estate can be an excellent option for diversifying the portfolio, hedging against risk and building wealth. Kanat Sultanbekov points out that multifamily real estate, like duplexes and apartments, can especially be a profitable investment for multiple reasons.  Such properties can provide a long list of benefits to the investors, including economies of scale, steady income, potential appreciation and a hedge against inflation.

Kanat Sultanbekov marks a few key reasons to invest in multifamily real estate 

For generations, real estate has been recognized as a lucrative and stable avenue for building long-term wealth. While options for real estate investment are many, multifamily housing especially presents a compelling opportunity to the investors. The reasons for investing in multifamily real estate are many, including:

  • Stable and consistent cash flow: As it provides potential for stable and consistent cash flow, an increasing number of investors are opting to put their money in multifamily real estate.  For instance, if one invests in a single-unit home, they would lose their revenue in case the tenant does not pay rent or moves out. However, if a person has a diversified portfolio of larger properties, they shall be able to enjoy a steady cash flow and be less vulnerable to individual tenants’ fluctuations. Even in times of economic uncertainties, families and individuals shall require a place to live, and hence rental income from multifamily properties is relatively reliable. As the population continues to grow and more people choose to rent rather than buy, the demand for rental properties is likely to remain strong, providing the potential for steady returns on investment.
  • High cash flow: In comparison to other types of real estate investments, multifamily properties have the potential to generate higher cash flows. Leveraging economies of scale, like shared maintenance costs and higher occupancy rates helps investors to maximize their rental income. The cost of maintaining and managing a single unit in a multi-unit building is typically is lower than the cost of maintaining a separate single-family home. For instance, if one does have an issue with the roof, they only need to pay for the repairs once rather than on multiple single-family homes. Moreover, the income from multiple rental units would help in offsetting the costs of any vacancy periods in the individual units. The consistently strong demand for rental properties due to rising home-ownership costs and mobile workforce, also contribute to its substantial cash flow. 
  • Increased property values: Investing in multifamily properties provides investors with the opportunity to enjoy the potential for property appreciation over time. Real estate has been proven to be a dependable long-term investment historically, and multifamily properties are no exception. As population growth and urbanization continue, the demand for rental housing will also go up, thereby providing the potential for steady returns on investment and driving up property values.

As Kanat Sultanbekov says, investing in multifamily properties would not only allow investors to generate income through rental payments, they would also benefit from property appreciation. While rental income provides consistent cash flow for the short term, property appreciation offers the potential for considerable returns over the long term.