Foreigners investing in multifamily

[Andrew Beshara]

Hi all, Have any foreigners here invested in multifamily property in the US? I like the idea of scaling with multifamily however is it a good idea for a non resident? Thanks, Andrew

[Sebastien Hitier]

Hi Andrew, I did both MF and SFH, I am not sure what you mean by scaling with multifamily.

You can buy 10 SFH, that gives you scale and diversification.

With MF, you may get higher yield for same area, but you may find resale opportunities and price growth more limited as you need to find an investor buyer.

MF will have higher maintenance cost, as these properties have more kitchen and bathrooms where maintenance occur, also, if there are common areas, you may need to hire someone to take care of them.

Financing for MF can be easier: if the price per unit is low, buying several units in one go allows you to borrow an amount large enough to better cover the fixed costs of mortgage.