Don’t Trust the Stock Market? Is Commercial Investment Property a Better Investment?

With Real Estate prices down, a buy and hold strategy, owning and renting real estate may be an investment option that looks more appealing and by buying right, you can generate a regular,  stream of income from positive cash flow.
With the current low prices, as a real estate investor using a buy and hold strategy, you should be able to manage rental property to produce a positive cash flow right from the beginning, generating extra income every month. Real-estate prices have come down a lot in the past five or six years, and mortgage rates are at historic lows. The problem is, inventories of single family homes are also at historic lows, causing multiple offers on many properties which of course is driving prices up, at least here in the Phoenix area making it more difficult to invest in single family homes for rental income. Fortunately there are many small multifamily apartment buildings for sale.
Investing in apartment buildings is a great way to begin investing commercial investment property. This is because apartment buildings are something that we all have had some introduction to at some point in our lives and are familiar with.
Apartment buildings are a strong commercial investment property because we all understand that “people will always need a place to live.
Bought at the right price, increases the ability for positive cash flow from apartment buildings to provide a steady source of income ( positive cash flow) for the owner every month. The nice thing is that because you have multiple units it is easier to justify having a property manager to handle the day-to-day activities.
If your new to investing in apartment buildings, your tax advisor will explain to you how the government offers special tax treatment for owners of commercial investment property, such as depreciation, and the impact your commercial investment property may have on your income tax return.

When it comes to investing in commercial investment property is that The most important thing to remember when considering a commercial investment property is Its all about the numbers !! A big mistake a lot of people make is that unlike buying a home for you to live in yourself, its not about the color of the carpet or even the condition of the carpet or how pretty the color of the building is, whether the building has garages or new maintenance free siding. The most important thing to remember when considering a commercial investment property is its all about the numbers !!

 

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

Leave a Reply

Your email address will not be published. Required fields are marked *