PURCHASE DISCOUNT & TAX SAVINGS
Purchasing multifamily properties is more affordable than other types of real estate properties, especially single family residences. It is, therefore, a more cost-efficient investment and relatively risk-free for first-time investors. SCDC also offers our investors a discount below the appraised value of our new construction multifamily complexes, giving you immediate equity after closing.
In addition to these savings, purchasing fourplexes or eightplexes instead of single-family residences helps you save on transaction costs, management expenses, maintenance labor, and record keeping. This also saves valuable time for each investor and helps you build up your rental portfolio and earn higher net income much faster. Multifamily properties are typically easier to finance, compound returns more quickly, and tend to benefit from economies of scale.
Multi-family investment properties also come with their fair share of tax breaks. Among them are: real estate depreciation tax, all expense tax deductions, cost-segregation deductions, 1031 Exchange tax benefits, and passive income tax benefits. Consult with your tax professional for a more detailed explanation of these tax savings and how to utilize them to your advantage.
Other savings from investing in multifamily properties from SCDC include lower insurance rates due to our superior construction methods using concrete that provide more energy efficiency along with better protection against wind, fire, flooding, pests and other natural disaster elements.
