They sound nice, but real estate investors may think that they are not so easy to come by. Those investors who do happen upon them find usually find themselves bogged down by the IRS’ strict stipulations surrounding them.
Tax credits are, in fact, tools set in place to help investors grow their portfolios and while they may seem complex, they are accessible to any investor willing to do a little extra leg work.
While nobody should be expected to know the entire IRS tax code, real estate investors should be aware of some very helpful tax credits that can be applied to their assets.
Whether investing in a multifamily property with value-add intentions or simply as a stable addition to your portfolio, it is important to consider the building structure and the costs associated with structure maintenance.
Jillian Bandes, of Bandes Construction Company knows just what to look for in building structure when valuating a potential multifamily investment. This episode, Jillian shares six hot topics for investors to consider about building structure when buying multifamily properties.
Costly repair and improvement item
Determine property’s inside and outside amperage
Enlist licensed electrician for any repairs or improvements
Unwise to cut costs on roofing materials and construction
Find dependable roofing companies, use quality materials
Roofing Warranties: 1-2 yr Workmanship Warranty; 10-20 yr Manufacturer Warranty
Air-conditioning represents a huge aspect to determine in Florida properties
Requires secure maintenance schedule
Replacement costs can be substantial
Doors & Windows
Many things to take into account with doors and windows
Observe building jurisdiction’s code requirements
Buying replacements in bulk may be more cost-effective than as-needed replacements
Interior trends fluctuate. Stay current with trends that tenants want
Value-add investors may want to put more into interior costs up front for greater tenant appeal and longevity: energy star appliances, natural stone counter-tops, removing partitions, adjusting ceiling heights
Frame vs. Masonry
Wood frame structures usually require much more extensive evaluations than masonry structures: water-proofing report, site level, landscaping, water table, drainage, etc.
Repairs and rehabs can be costly on frame structures
Masonry offers more stability and investment assurance
For more information from Jillian about important items to consider about building structure she can be contacted through Twitter @jillybee or by visiting Bandes Construction Company’swebsite.