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Real Estate Investing Multi-Family Real Estate Investing

Medical Specialists: Weathering COVID-19 with Investments

As a physician, you benefit from higher income, but if you are a medical specialist your income is likely impacted by COVID-19, due to a decline in elective procedures and non-emergency surgeries. Despite the changes, medical specialists likely won’t receive a federal government bailout. The stimulus is based on 2019 earnings and almost all medical specialists fall above the maximum paygrade to receive a check.

On top of that, you may feel that your investment portfolio is at risk. Today’s climate is the perfect example of why you should have a diverse portfolio – one that includes recession-resilient acquisitions.

In our experiences, multi-family investments can be a huge win for physicians and medical specialists. Here are some of our favorite reasons why a multi-family investment could help provide you with a stress-free investment and some peace of mind against market volatility.

Focus on your Career, while others Manage Properties
If you select the right firm, you’ll reap full benefits from your investment, without having to do extra work. Look for a real estate firm that will handle all of the small details, including cost-effective, profit-generating renovations and top-of-the-line leasing strategies. Technology is a huge factor. The best real estate firms incorporate user-friendly technology, so investors can be knowledgeable about specific properties with the click of a button. 

Connect with us today to learn more about why you should incorporate multi-family real estate into your portfolio!

Tax Advantages
With multi-family real estate, you can take advantage of depreciation tax breaks. Even though the value of a carefully chosen commercial property should only increase with time, the IRS operates on the assumption that the properties will depreciate, due to the aging process. The policy is based on aging U.S. buildings. Making a blanket assumption is easier for the U.S. government, than to collect appreciation and depreciation data on hundreds of thousands of apartment communities. Basically, if you invest properly, you will have an appreciating asset, while legally benefiting from depreciation taxes.

Booming Locations
Even with COVID-19 economic problems, certain locations are booming for U.S. investments. For example, Seattle was the only U.S. city to see job gains in May 2020. Cities like Austin have a lure for relocation because of staycation appeal during COVID-19, along with the hype of potential relocations for major corporations including, Tesla.

Overall, multi-family is a great opportunity for medical specialists who are looking to use some time out of the office to plan for a resilient future. Unlike commercial real estate, which is struggling due to retail closures and less demands for office space, the outlook for multi-family property investments is still strong. People need shelter, and in times of economic crisis, as some people will likely move out of their single-family homes, the need for apartment housing will likely rise.

 

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Ari Rastegar
Author:

Ari Rastegar

Ari has built a portfolio network designed to reduce risk and provide strong quarterly cash flows, with an emphasis on asset classes such as self-storage, multi-family, office, retail, and industrial. He’s been recognized for his specialties in recession-resilient strategies and commercial real estate investments.