5 Reasons Why Multifamily is Better Than Any Other Asset Classes

Although real estate carries a large variety of markets, no matter how much the world or the society changes and how expensive living becomes, multifamily properties stay as investors' preferred assets to purchase.

We could list countless reasons as to why people are so attracted to multifamily properties. But to not bore you out, let's settle with - 5 reasons why multifamily is better than any other asset class.

1. Stable cash-flow.

Multifamily stands out with its potential of generating a stable cash flow for its investors, which is possible by multiple living units that it holds. If we compare it to the single-family property, where you are either renting a home or have a 100% vacancy, here even 2 or 3 vacant units won't be able to harm your income since you are still earning it from others.

2. You can earn passively.

Even though many consider multifamily properties as hard to manage, a person can always make a passive investment in it. For example, more than 80% of the investors purchase multifamily properties together with others, trough apartment syndications where the properties are taken care of by the owners of the deals, and they have no direct responsibilities of managing it.

3. Growing a portfolio is much easier.

Multifamily apartments are an excellent option for investors who are looking for ways of growing their investment portfolio faster. Rather than purchasing 15 single-family houses, working with multiple different sellers, opening up separate loans for each home, or other headaches like this, you can acquire multifamily with 15 living units.

4. Multifamily generates excellent profit.

If it wasn't obvious already that with multiple units you would be able to generate a cash-flow of your dreams, let me tell you that according to a research report by CBRE provided in 2018, over the 25 years from 1992 through 2017, multifamily real estate produced the highest average returns of 9.75%, compared to any other commercial sector of real estate.

5. Multifamily offers long-term safety.

A house to live in is what will always stay in demand. The growing popularity of multifamily housing proves that no matter what other alternatives will be created for any other aspects of living, people will always need a place to call home. And that's precisely what makes multifamily assets an excellent investment option for a long-term, safe income.

Conclusion:

No matter what you are looking for when investing in real estate, either if it's first cash, passive income, or long-term investing option, the multifamily can provide it with all, proving itself as the best asset class of the real estate.