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Residential Buildings

Why Invest in
Multi-Family ADU,
with Solidon?

  • What is ADU? (Pg 1)

  • Safe Investment (Pg 2)

  • Great Return on Investment (Pg 3)

  • Steady Rental Income (Pg 4)

  • Tax Advantage (Pg 5)

  • Ability to Leverage Funds (Pg 6)

  • Diversification of Assets (Pg 7)

  • Trusted Person (Pg 8)

Tax Advantages

Net Rental Cash Flow   VS   Taxable Income

Depreciation
Ex: Property Value + Construction Cost = $1,400,000
Divide that value by 27.5 year expected life of the property (other commercial properties has 39 years of depreciation period), you can deduct $50,909 in depreciation each year.

Deductible Items

Property Taxes
Property Insurance
Mortgage Interest
All the related costs to maintain the buildings

Yearly Rental Income:

Property Taxes (1.25%):
Mortgage Payment:
Utilities:
Repairs (6%):
Management (6%):
Insurance:
Reserves (3%):

Total Expenses:

Net Rental Cash Flow:

Depreciation:

Taxable Income:

$220,800

$30,000
$75,848
$18,000
$13,248
$13,248
$2,500
$6,624

$159,468

$61,332

$50,909

$10,423

EX:
$2,000,000 Purchase Price - 6 Units ($2,300 rent / M / Unit)
$1,000,000 Down Payment / $1,000,000 Financing @ 6.50%
$400,000 Construction Cost - 2 ADUs

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