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8 Things I’ve Learned From Investing in Multifamily Apartments

Investing in Apartments is very different from Single Family Homes

Photo by Brandon Griggs on Unsplash

Several years ago, I scaled from investing in single-family houses to multifamily apartments.

These are the biggest lessons I’ve learned:

1. Lower-class properties have better occupancy, stability, and ROI than higher-class properties.
2. If you buy a property that is already cash flowing, there probably won’t be much growth. If you buy a property for growth, it probably isn’t yet cash flowing.
3. The easiest and most effective strategy: Find a poorly managed property, and install a new management team.
4. Find the “story” in P&L numbers. Is there too much turnover? Are maintenance costs too high? Are rents too far below market? These may be signs of poor management.
5. Make sure your Property Manager has business relationships in the location you want to invest. If not, it will take up to six months to develop those relationships.
6. Reverse engineer the buying process by having your Property Manager evaluate the property, and give their assessment.
7. Property Manager lifecycle:
   I. New…