Why Multi-family apartments?

Everyone needs a place to live, regardless of the current economic cycle.Why we like multi-family apartment buildings: 

Lower purchase price, same rent

Due to higher economies of scale, the ‘per door’ cost of an apartment unit is less than a single family home or condo, but can generate the same rental income.

For example, you can buy an apartment building for $90K–$100K per door that rents for $800 per month, or you can buy a condo worth $150K–200K that rents for a similar $800–$1,000 per month. This means you can have almost double the rent for the same amount of investment capital, assuming you have enough to buy the apartment building.

Less vacancy risk
Apartment vacancies are far easier to manage. If you own a rental property and your only tenant can’t pay their rent, you have a risk exposure of 100%, and you’re now paying all operating expenses (mortgage, taxes, etc). When you own an apartment building and tenant doesn’t pay their rent, the rest of your tenants still cover operating expenses. The chance of every tenant in the building failing to pay rent is almost zero.

Lower operating costs
Lower operating costs increase your cash-flow. Apartment buildings share electrical, plumbing, heating systems and more across all units, which reduces maintenance costs. The most obvious example would be that everyone shares one roof.

Easier management
When you own an apartment building, professional third party management and on-site caretakers become a reality. All tasks (rent collection, maintenance, etc) are handled at one location for all tenants. If you own a single family home or condo, finding third party management can be nearly impossible as they can’t work efficiently enough to make an attractive profit.