The main reason for owning multifamily property has changed …
Since the tax change of 1986, until recently, the top 4 reasons for buying apartments were:
- Cash Flow
- Appreciation
- Principle Reduction
- Tax Deferral
These reasons have flipped in order. Now, they are:
- Appreciation
- Principle Reduction
- Tax Deferral
- Cash Flow (if there is any!)
The new, overiding motivation for owning real estate is Equity Preservation!