The Characteristics of A Great Multifamily Investment

The Characteristics of A Great Multifamily Investment

The multifamily asset class is proven to beat inflation, provide cash flow and outsized returns from the increase in equity through value-add strategies. Further, it provides a need to communities who could use safe and decent housing as the supply of housing cannot keep up with demand. All stakeholders can win from investing in this asset class. However, not all properties are created equally. Below are the general characteristics of great multifamily investments.

Great Multifamily Investments

Market – more important than the property itself, market selection is critical to a successful investment

  • Population growth – indicates continued demand for housing
  • Job Growth – a leading indicator of population growth
  • Diversity of jobs and industries – minimizes risk of losing demand due to critical job loss in area

Property – the property should be in a strong market with great potential for improvement of performance

  • Neighborhood: In growing side of town and in the path to progress
  • Management: opportunities to better manage the property, satisfy tenants, advertise, raise rental income and reduce expenses
  • Physical: opportunities to address deferred maintenance and/or make physical improvements to reposition the asset for higher income
  • Performance: at the acquisition price, can produce cash flow to investors on day one.

Robinson Capital

At Robinson Capital, we seek opportunities to invest in apartments and communities that meet the above criteria. Find out more about our company and strategy here.

Safe Investing!

RRII


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Rodney Robinson II
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