Why Invest in Apartments / Multifamily Housing?

Apartments benefit greatly from economies of scale. Having multiple units located in one location, as opposed to a Single Family rental portfolio, simplifies operations. In fact, when purchasing larger multifamily properties (~80+ units), revenue from the property can be used to hire full time staff to operate onsite.

While the value of a Single Family home can naturally appreciate over time, its increase in value is largely limited by the market and comparable sales. Apartments, on the other hand, benefit more significantly from forced appreciation – actions taken by the owners to improve the value. This is because the value of an apartment is directly related to its Net Operating Income (NOI), so increasing a property’s income will also increase its value.

Investing through a multifamily syndication, allows you to pool resources and utilize others’ experience to manage and improve the property, while owning part of an asset that is larger than you could otherwise purchase or manage on your own.