The Real Estate arena has a large variety of investing options. Whether you are looking for a quick turnaround to make fast cash or something to buy and hold to create cash flow or looking to invest in a fund or syndication to create passive wealth, there is something for everyone. One thing is certain in our ever-changing economy, no matter how many people go working remotely, no matter how much retail purchasing moves online, people will always need a place to live. This is a primary reason that multifamily properties continue to be investors’ preferred assets to purchase.
We could list countless reasons why people are so attracted to multifamily properties. But to keep it simple, let’s stick to the top five.
1. Stable cash flow.
Multifamily excels in its potential to generate a stable and less risky cash flow for its investors. This stability arises from the simple fact of its multiple occupancies. Compare it to a single-family property. With only one door to occupy, you are either renting the home or have a 100% vacancy. Multi-family properties are highly unlikely to get a 100% vacancy rate. With multifamily properties, 1 or 2 vacant units won’t hurt your income stream since the other units continue to cashflow.
2. You can earn passively.
If being a landlord and dealing with tenants is not something you want to do, multifamily is the perfect place to invest passively. More than 80% of investors purchase multifamily properties together with others, through apartment syndications where the properties are taken care of by the owners of the deals, and they have no direct management responsibilities.
3. Growing a portfolio is much easier.
Multifamily apartments are an excellent option for investors who are looking for ways to grow their investment portfolio faster. If you have a goal of adding 15 doors in the next year it might be overwhelming to purchase 15 single-family houses, work with multiple different sellers, or work with several lenders to obtain separate loans for each home. With multifamily, you can acquire 15 doors in a single transaction.
4. Multifamily generates excellent profit.
If it isn’t already obvious that multiple units enable you to generate a cash flow of your dreams, according to a research report by CBRE provided in 2018, over the 25 years from 1992 through 2017, multifamily real estate produced the highest average returns of 9.75%, compared to any other commercial sector of real estate.
5. Easy to Finance.
If you are investing passively in a Multifamily REIT or Syndication, you do not need to have access to the entire amount of the purchase price of the asset to gain entry, but what if you are looking to be the sole owner? Keep in mind that multi-family homes are expensive. However, due to positive cash flow, banks and loan lenders are more motivated to give a mortgage to a multi-family rental because they tend to believe these are the best long-term investments and are likely to generate enough income and cash flow to cover the loan payments.
Conclusion:
No matter what you are looking for when investing in real estate, fast cash, passive income, or a long-term investment option, multifamily proves over time to be one of the best asset classes of real estate.
Invest Confidently with Shannon Robnett
Knowing the advantages of Multifamily Real Estate as an investment isn’t just a technical detail—it’s the key to aligning your investment strategy with your personal financial goals. At Shannon Robnett Industries, we bring decades of experience structuring both types of opportunities, with a proven track record of helping investors build wealth through carefully vetted, tax-advantaged real estate projects. Whether you’re seeking steady income through debt or long-term growth through equity, our team is here to help you make the right move.