Real estate investor Frank Roessler is the founder of Ashcroft Capital, a multifamily investment firm based in Westwood, California. In his leadership role with the firm, Frank Roessler identifies and acquires multifamily properties with value-adding potential via capital improvements or by tightening operational inefficiencies.
When compared with other types of real estate, multifamily properties offer a number of advantages to investors. Because multifamily real estate contains numerous units on the same property, investors need only one property manager to handle tenant disputes, rent collection, and upkeep. In the same vein, multifamily real estate allows investors to take advantage of economies of scale, particularly when compared with single-family homes scattered across a geographical region.
Another advantage of multifamily real estate revolves around cash flow. If the tenant of a single family home fails to pay rent, the owner has lost his or her entire income from that property. If a tenant of a 10-unit multifamily property fails to pay rent, the owner has lost only 10 percent of his or her cash flow. In this light, multifamily real estate helps to ensure a stable, consistent income.