Multi-Family Investments: Tax Benefits

Man looking over documents and making calculations

Investing in multi-family properties can bring many financial rewards. Any additional income from rent, beyond what you need to cover the mortgage, can be used to better the properties or invest in additional rental properties.

Aside from the additional income, investing in multi-family housing can bring some extensive tax benefits as well. Talk to your CPA or qualified tax consultant to see what tax benefits you could receive from investing in a multi-family property. You might find that you qualify for the following.

Tax Deductions

When you own a rental property, you qualify to deduct expenses that you pay to manage your property including portions of your gas used to get to and from the building, ink for your printer (if it’s used solely for the purpose of printing rental property documents), and more.

1031 Exchanges

1031 Exchange is used by real estate investors who know what they’re doing. It allows investors to basically bypass paying taxes when they sell. This means that if you choose to sell your property, you could have more money in your pocket available to put towards another, better property.


Can depreciation really be a good thing? Absolutely. You can deduct depreciation from your taxes each year. The IRS knows that things will fail, stucco will flake off, and roofing will need to be repaired so they allow investors to deduct the cost of their rental buildings over time. Even though the value of your property may go up over the years, you are able to deduct anything that does break down separately.

Don’t Have the Time but Want to Invest?

Creative Realty Partners offers real estate syndication and manages your realty investments in Dallas, Orlando, Los Angeles, and many other locations. Real estate syndication allows investors to play a passive role in the maintenance of their properties while still reaping the benefits of investing and diversifying their portfolio.

Get in touch with us to view our current offerings and learn more about what we do. Don’t let time constraints keep you from investing. Let Creative Realty Partners help you achieve your goals.