The Truth About Multi-Family Properties

So many people like it because it's a simple and straightforward investment model. They've either lived apart in apartments or they know people who have.

It's a simple lease form, usually six pages or less, either allowed to have a dog or you're not. And you pay a fixed fee rental thousand dollars a month for your two bedroom apartment.

Some of the cons of it, though, is that these tend to be management intensive.

Every time someone has a problem, if you're the landlord, it can become your problem.

You can have tenant squabbles, you have people not paying their rents, and you deal with a ton of consumer protection laws that can really slow your roll.

One of the reasons why I like it is because it's progressive. Your tenants expect there to be a rental increase each and every year, and just by that force alone, you're able to create value.

If you learn how to go ahead and compress those expenses and get them down, you can create massive value in a very short window of time.

In addition to that, they're easy to stabilize because they're a commodity.