Buying property is a great way to build your financial portfolio. Investment properties tend to be the gift that keeps on giving because not only can you make enough money to cover your own living expenses, but you also stand to generate a serious profit. The key is to choose the right type of property. Purchasing a single-family home might be tempting, and a duplex could be calling your name. However, discover the benefits of opting for a low-income housing apartment building to see why it is such an excellent choice.

Low-Income Housing Is Subsidized

When you buy a piece of property, you are looking to make money off of it. This starts with choosing tenants who will pay their rent. Although you can run extensive credit and background checks to review the personal history of a potential tenant, there is really no way to truly determine whether or not a person is going to follow through on the rental agreement. It can be a risky endeavor because if the tenant reneges on the deal, you'll probably have to spend a lot of money to have them evicted.

You can lower your risk by purchasing a low-income housing unit. Low-income housing is usually subsidized by the government, so a large portion of the rent from each apartment is essentially guaranteed to come in. If you set the rental rate at the right level, you should still be able to turn a profit, even if the tenant is periodically unable to pay their share of the rent.

Investing In Low-Income Housing Could Qualify You For Tax Credits

Reducing your tax obligation means you get to keep more of the money that you make. If you're in a rather high tax bracket, you could be suffering under the weight of heavy tax responsibilities. Finding a multi-unit apartment building and having it rehabilitated to use for low-income housing purposes, you could qualify for a very sizable tax credit. It's a winning situation because the credit could be so substantial that you end up paying much less for taxes each year and are able to grow your financial status even faster.

Owning a low-income housing unit can be very rewarding. There may be people in your area who need affordable housing, but it just isn't available. Buying low-income housing allows you to help those in your community while you simultaneously build your bottom line.