There are many reasons to invest as a Limited Partner in a multifamily property, but here are 5 of our favorites:
Maslow's Hierarchy of Needs places shelter as one of our basic human necessities. Should an economy enter into a recessionary environment, multifamily has historically shown to be a resilient investment. This is especially true for non-luxury/Class C properties. When tough times hit, many renters have to downsize to lower cost rental options. Thus, well-positioned properties can become the next best option for renters, well managed properties can even continue to increase rents to keep up with inflation
Stable Investment: Multifamily properties are one of the most stable investments and are often referred to as being “recession resilient”. Everyone needs a place to live and the demand for apartments (renters) continues.
Cash Flow: Blue Bison invests in apartments that distribute cash flows quarterly. Large apartment buildings can have vacancies and still provide good cash flow unlike small commercial properties or single-family homes.
Tax Efficient: Direct investing in apartment buildings allows for using depreciation to offset the tax liability from the income. The result is reducing (if not eliminating) the tax during the investment hold period.
Value Add: This simply means investing in assets that can be improved. Value-Add investing ensures equity and appreciation are created. This allows for a greater margin of safety and also greater returns on the investment.
Equity: Equity in multifamily grows on day one. The residents pay down debt, which creates equity and long-term wealth.
