Multifamily investing refers to the ownership and management of residential properties that have multiple units, such as apartment buildings or condominiums. This type of real estate investment can offer investors the potential for higher rental income and economies of scale, as the expenses of managing the property are spread over multiple units.
Multifamily properties are typically owned and managed by professional real estate investors or investment firms. The goal is to generate rental income from the tenants and also benefit from appreciation of the property value over time. Multifamily investments can be made through direct ownership or through participation in a real estate investment trust (REIT).
As with any real estate investment, there are both potential benefits and risks to consider when investing in multifamily properties. It’s important to thoroughly research the market and understand the potential cash flow, rental demand, and expenses before making an investment.