How to Maximize Your Multifamily Housing Investment

Posted by Roberta Bartel on May 14, 2020

One of the biggest pros in investing in multifamily housing is cash flow.  One of the biggest questions is how to maximize your investment.

Why is multifamily housing a good investment? Multi-family devils lake apartment 

Cash flow - because there are multiple units, there is more cash flow. Because there is more money coming into your pocket every month. A single family rental will not generate as much cash.

Everything is in one place - only one lawn, only one roof, only one building to manage.

Less vacancy - multifamily units are rarely completely vacant.

Everyone needs a place to live - as long as you have a decent property in a decent area you will find renters.

How building energy-efficient housing maximizes your investment and cash flow

A building that is energy efficient begins with the building enclosure.  More and more developers are turning to Structural Insulated Panels or SIPs to fill this need.  Here are 6 reasons why:

1.  Tax Credits - The 45L residential tax credit has recently been extended through the end of 2022 in its current form. This tax credit is equal to $2,000 per residential unit or dwelling to the developers and/or eligible contractors of energy efficient buildings. This tax credit may be advantageous to developers/owners of SIP built apartment buildings that are 3 stories or less, which meet energy efficiency standards. Units leased or sold in 2023 and later switch to ENERGY STAR standards with an increase in tax credit to $2,500 or $5,000. ENERGY STAR certification is the pathway to qualify for the 45L tax credit.

2. Utilities - Will you offer "utilities included" units or will the tenants pay their own utilities?  You may want to consider including the utilities. When you are building super energy efficient SIP buildings, you can realize the income from the lower heating and cooling costs in addition to the rent.

3. Build Faster - When you build with SIPs, you can expect the envelope to come together 50% faster.  The framing, sheathing and insulating are done in one step, instead of three.  Plus door and window openings are installed at the factory.  Added bonus, SIPs are straighter and make it easier to drywall.  The sooner your building is done, the sooner you can collect rent.

4. SIPs Are Strong - The solid construction of SIPs will hold up better to damage caused by tenants.  Structural Insulated Panels are also less prone to storm damage.

5. Healthier Living Conditions - Because SIPs are tighter, fewer outside pollutants can get in.  The solid insulating foam core of SIPs eliminate air circulation and dust circulation within the walls. A much better solution than fiberglass insulation that will hold on to dust and contaminants.

6.  More Comfort for the Tenants - No more drafty walls.  Your tenants will stay longer, because they will be more comfortable.  The superior insulating quality of SIPs will evenly control your indoor environment throughout the year.  The solid panel will also reduce ambient exterior noises from getting in.

Multi-family jurrens apartment

Multi-family Housing



Topics: building envelope, Structural Insulated Panels, multi-family housing