Kanat Sultanbekov Explains Why Multifamily Properties Are the Perfect Investment for Long-Term Success

Real estate investment can be a daunting task for many. It involves weighing the risks and benefits and carefully analyzing different factors before making a final decision. However, investing in real estate can be an excellent means to make one’s money work for them. According to Kanat Sultanbekov, multifamily properties are a great option when it comes to choosing a property type to invest in. As an individual investor, it is possible to invest in a large-scale asset such as a multifamily property. Doing so has many benefits, such as the potential for a steady cash flow from rent and property appreciation. It is important to carefully research and consider all factors before investing, but with careful consideration, real estate investment – especially in multifamily properties – can provide a significant return on investment.

Understanding Multifamily Properties

Investing in multifamily real estate properties has become a popular and lucrative option for many individuals. As the name suggests, multifamily properties are large-scale investment properties that can house multiple households, making them attractive options for both investors and renters alike. Examples include apartment buildings, complexes, duplexes, bungalow courts, high-rise apartments, and condominiums. Kanat Sultanbekov mentions that one of the primary benefits of investing in multifamily properties is the ability to diversify risk as multiple tenants, rather than a single tenant, are paying rent. Economies of scale can be achieved with larger properties, resulting in lower maintenance and management costs. Investing in a multifamily property can provide a solid financial return while also serving as a valuable addition to one’s investment portfolio.

Benefits of Multifamily Property

Consistent Rental Income

Multifamily and rental properties continue to be a preferred option for real estate investors due to the consistent flow of rental income that they offer. These large-scale real estate assets generate a constant and substantial monthly income. The level of occupancy in these properties is crucial; the more tenants residing in the building, the higher the monthly return. Rent is also a predictable source of income, making it less volatile. When a tenant leaves, it is relatively easy to find a replacement, ensuring the high-occupancy level of the asset is maintained. This attribute of rental properties contributes significantly to the steady and reliable cash flow that the investment produces on a monthly basis, appealing to investors who prioritize consistency in their portfolio.

Easier Management

Compared to other forms of real estate, multifamily housing can be easier to manage. With only a few administrative staff and security personnel required, the rest of the property is often maintained by the residents themselves. Kanat Sultanbekov says it makes it easier to keep an eye on the asset’s condition over time. Since the units are close together, it’s possible to manage multiple properties without being everywhere at once. Hiring a property manager or management company is often the best way to handle day-to-day operations and ensure your investment is consistently managed and maintained.

Affordable

Investing in multifamily properties is a smart move, as they are often more affordable than other forms of real estate. One of the main advantages is that building and purchasing multifamily properties can cost significantly less than other properties. Investors can take out a mortgage payment to acquire the building at a much lower total range. From a unit development standpoint, it also becomes more affordable to develop multiple closely linked rental units under the same roof than completely separate buildings. The foreclosure rate on these types of properties is significantly lower than that of single-family homes. As a result, mortgage lenders can find a competitive rate for investors when it comes to multifamily properties.

Tax Incentives

Multifamily homes have long been considered an attractive and wise investment. What many investors may not be aware of are the tax benefits that these residential properties offer. The government provides tax incentives for multifamily property investors as a means of addressing the shortage of housing. The immense value of the housing supply that your building can offer provides significant relief for the government. This relief, in turn, allows for a smoother and steadier real estate development process that meets the demands of the population. These tax incentives vary based on the type of property and can provide substantial advantages that maximize your revenue pool and minimize tax-related concerns.

Value Appreciation

Investing in multifamily properties is an appealing option for many investors because of the sustained appreciation of their value over time. In comparison to other forms of real estate assets, multifamily investments have a higher percentage of appreciation. By maintaining the property through periodic upkeep and cosmetic upgrades, the value of the property can increase significantly. Kanat Sultanbekov emphasizes that this appreciation not only benefits the investor but also attracts potential renters who are willing to pay for the convenience and comfort of well-maintained living. Therefore, a well-maintained building, coupled with competitive rent rates, can lead to a higher occupancy rate and increased cash flow.

Kanat Sultanbekov is an experienced construction manager with 15+ years of expertise in the industry. His mission is to use his knowledge and experience to help people get the best possible results on their projects while ensuring safety and cost efficiency. Through risk assessment techniques, Kanat has become a master of project management as well as cost control. He also holds prestigious certifications from The Wharton School Aresty Institute of Executive Education at the University of Pennsylvania and Harvard Business School. Kanat believes that everyone deserves quality workmanship, which he strives for with every individual project by providing unique value for each customer. His commitment to excellence extends beyond professional life – he is an active supporter of the American Childhood Cancer Organization (ACCO) and The Good Dog Foundation (TGDF). Read more of his blogs on page.