Multi family or no?

[Shalom Benton]

It seems like multi families are suggested as the way to go for passive wealth building....And it also seems like most multi families (4 units or less) are geared towards lower income.

So what are you guys renting these places for? And what is your mortgage cost?

In my area, I see the retail cost of a multi family is still high. It’s a sellers market. And it’s not worth what I’d get in rent, since most are lower income.

So what’s the secret that I’m missing?

[Joseph Firmin]

You're making some broad assumptions. I own nothing but multifamily assets and none of them are low income. You can target low income if that is what your strategy is, but you can also target a Class A multifamily building. Set your goal and then choose the strategy that fits what you would like to do. If your immediate area does not support your strategy, it's time to look outside of your area. Make sure the numbers work and do your homework.