Financial Advantages of Multifamily Investment


Ashcroft Capital pic

Ashcroft Capital

Real estate executive Frank Roessler is the founder of Ashcroft Capital, LLC, in Westwood, California. As a principal of the firm, Frank Roessler oversees a broad range of real estate transactions within the multifamily sector.

Multifamily real estate offers a number of advantages over single-family homes. By their very nature, multifamily apartment buildings provide a large number of rents instead of one rent from a single family. Because the loss of one or two rents represents only a small fraction of overall rent payments, multifamily real estate minimizes income-related risks for investors.

Another advantage of multifamily real estate involves economies of scale, or the incremental reduction of per-unit cost as the total number of units increases. In multifamily real estate, one way this translates is having to hire only a single property management company to look after the entire property, even though the property may contain many housing units. Whereas eight single-family homes would require eight different landscaping and maintenance operations, an eight-unit multifamily property requires only one. Other economies of scale advantages include security, laundry services, and recreational amenities.


Get Started in Multifamily Real Estate with These Three Tips


Multifamily Real Estate pic

Multifamily Real Estate

Frank Roessler is the founder of Ashcroft Capital, LLC, a multifamily real estate investment firm based in Westwood, California. Frank Roessler plays a central role in all operations of the firm, including identifying investment properties in target markets.

Like most other real estate sectors, multifamily requires a certain level of industry-specific knowledge to ensure success. Here are three tips to help new multifamily investors boost the performance of their real-estate portfolios.

Start with single-family properties: Instead of diving straight into a multimillion-dollar multifamily investment, start with a smaller single-family home. Not only will you become familiar with the real-estate industry, but you will also minimize your risk profile early on in your career.

Network aggressively: Real estate is an industry built on professional and personal networks. Networking contacts can notify you of new investment opportunities or connect you with people in target markets, saving you both time and money. Always be on the lookout for networking opportunities and new contacts.

Stay committed: The most successful multifamily investors are the ones who devote regular time to real estate every week. Ideally, you should try to devote at least an hour to real estate every day. This will allow you to keep tabs on prospective properties and begin thinking like a savvy investor.