Along with the benefits in the previous post, here are some things that really gave us the ‘aha’ moment and why we fell in love with Multifamily (MF) investing.
More people are renting than ever. If you read the housing news, Millennial’s prefer to travel and don’t want own. At the same time, Baby Boomers are downsizing and entering the market.
With respect to loans, there are great MF-specific products with fantastic terms that we can use to our advantage. Additionally, non-recourse loans over 1M separate our personal assets from the business.
MF has the ‘scales of economy’ that single-family, Industrial and even Office do not. We prefer to have one property, with one tax/parcel and many leases paying off our debt service and expenses. Additionally, as the size of the deal goes up, the cost basis goes down.
MF apartments tend to remain stable during recessions compared to other property types, and are less sensitive to changes in economic activity.