Reason #1: In residential (1-4 units), vacancy is a returns killer. Reason #2: Commercial multifamily holds up well in recessions. Reason #3: Operating expenses are typically lower/unit in CMFR Reason #4: Economies of scale make CMFR more passive-like investments Reason #5: CMFR value is more within your control than Residential value Reason #6: Attractive financing…..
Category Archives: investment
1. Forces you to treat the property as a business In real estate valuation, there’s a term called “highest and best use” which refers to a property/building’s most optimal use given its characteristics and location. As an investor, we apply that same concept to your time. An investor’s time should be focused on what they…..
1. Go where people are going It’s not just birders that care about migration patterns anymore. This might seem self-evident but you need to go where tenants are going. Demographics matter because they help you gauge inherent demand. People move, populations swell, rental rates increase, generally speaking. The key though is sustainable growth. You don’t…..
Some of our readers may be asking what lead us to multi-family. After all, for the past few years, Gonzalo and Marc have mostly specialized in buying, renovating, refinancing, and holding residential 1-2 family houses in the northern NJ area. Before we get into why we think commercial multifamily offers superior risk/reward characteristics, let’s define…..
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