What is Multifamily?
Multifamily Real Estate:
A Brief Overview
Multifamily real estate refers to residential properties that contain two or more separate living units within the same building or complex, each designed with its own kitchen, bathroom, and living space so different households can live independently. These can range from duplexes and fourplexes to large apartment buildings or condo communities.
Multifamily housing plays a key role in addressing both affordability for tenants and population density needs, especially in urban and suburban areas where land may be limited.
The Strengths of Multifamily Assets
Lower Per-Unit Cost
Counter to what one might think, having more units on a single property can actually drive down operating costs. Through economies of scale, professional management, and a focus on efficiency, a property like an apartment building is likely to be more cost effective per unit.
Reduced Risk of Vacancy
With a single-family home, if a tenant moves out, the income stream is halted. When you have many units and tenants, this risk from vacancy is spread amongst them all.
Strong Demand
Apartments tend to remain in demand across different economic conditions. They fulfill a community need for affordability and more housing density in less land area. People will always need a place to live.
Tax Benefits
There are tax benefits that make multifamily properties a lucrative investment option - namely a concept called "depreciation."
Easier to Manage
Individual homes each bring their own challenges. With multifamily, you stand to earn a comparable reward to that of an entire portfolio of single-family homes but with much less of a headache.
Scalability
Where it might take a long time to grow a portfolio of single-family rentals, one, two, or three multifamily properties can get you to that same number of units for your desired outcomes much faster.
Does multifamily fit into your investment journey?
Get in touch with our team via phone or email. We would be happy to start a conversation with you about your interest, as well as answer any questions you may have.