A cash-on-cash return, also known as a cash yield, is a metric commonly used in commercial real estate investing. It is a rate of return that calculates the cash income earned on cash invested in a property, generally on a pre-tax basis. In real estate transactions, it often measures the annual return the investor received on a property relative to the amount of mortgage paid in the same year.
Enhanced Tax Benefits of Investing in Multifamily Properties
Investing in multifamily properties offers a wide variety of advantages for sophisticated investors. Leverage, cash flow, appreciation, equity growth, and, often overlooked, tax savings are all financial features of a sound multifamily real estate investment.
How Real Estate Investments Can Reduce Your Taxes
Being able to greatly reduce your tax liability while maintaining returns and diversifying your investment portfolio is one of the best reasons to dive into real estate investing. So how do these tax reductions work?
Investing in Multifamily Workforce Housing – What Does the Data Say?
This statistic alone should give investors a reason to consider multifamily real estate as a vehicle to diversify their investment portfolios. However, there are several other trends and factors to consider that make multifamily workforce housing a smart investment strategy.
Benefits of Investing in Commercial Real Estate
Investing in Commercial Real Estate offers three primary benefits to individual investors: strong returns, portfolio diversification, and tax efficiency.