Finding your next multifamily investment can be challenging, especially in today’s market environment. Cap rates are at record lows, and interest rates are rising
Market Trends
Real estate investors commonly use IRS Code Section 103 to exchange properties, thus transferring and deferring tax payments. Pending changes to the IRS tax code could impede attempts to defer capital gains taxes through Section 103.
Advanced investors know that to really unlock the power of depreciation, you have to use cost segregation. Effective, expert cost segregation can help you enhance and increase the amount of depreciation you can claim — sometimes multiplying it by up to a factor of 10x in a single year.
Investors use cap rates (short for capitalization rates) to gauge the quality of an investment. But what is a cap rate, how is it used, and how is it calculated?
Demand for apartment buildings will remain strong, considering many buyers have already been priced out of the market. Due to rapidly rising mortgage rates, buyers need to earn more than $100,000 to afford to buy the median-priced home. However, only 15% of the renters earn that income.
The year is still young. Inflation, interest rates, supply chain, and geopolitical events are the main factors determining how commercial real estate will perform in the following months.