🏘️ Commercial Multifamily
Apartments and Multifamily
Pros
Favorable financing
Everyone needs a place to live and homeownership is decreasing
Easiest entry point into commercial real estate
Cons
Expensive (low cap rates)
Very competitive
Needs a substantial amount of research
More work than other commercial property types
💡 Apartments are incredibly popular, the difficulty is often in scaling. It doesn't become passive until you have at least ~100 units or if you invest passively in other's projects.
Acquisition
Management
Commercial MultiFamily
Just like regular multifamily but more units. So regular residential multifamily is 1-4 units but when start having 4 or more units now its labeled as commercial.
The more units you add the more the model changes from running comps on your home (1-4 units) to more cashflow based (5+). Keep this in mind. SFH are usually based off comps, triplex and quadplex they look at cashflow and factor in DSCR, while 5+ units its mostly cashflow.