Why You Should Invest In Multifamily Real Estate
Monday, August 25, 2025
If you’re considering real estate investing, you’ve likely thought about buying single-family homes and renting them out for cash flow. While that can be a viable option, there’s an even stronger wealth-building strategy that many investors overlook: multifamily real estate. Multifamily investing allows you to scale faster, reduce risk, and create long-term financial security. If you’re serious about building lasting wealth, here’s why you should invest in multifamily real estate.
Many new investors start with single-family rentals, but they quickly realize how difficult it is to scale. Managing 10 rental homes in different locations is far more challenging than owning one 10-unit apartment complex in a single location.
Key benefits of multifamily over single-family:
If you’re looking to build a real estate portfolio quickly, multifamily investing offers a smoother, more efficient path.
Many investors don’t realize that multifamily properties are more recession-resistant than single-family homes. I learned this firsthand during the 2008 financial crash when I owned 800 houses and multiple apartment complexes in Florida.
My single-family rentals struggled. When tenants left, I still had to cover taxes, insurance, and maintenance, often at a loss.
My multifamily properties, however, kept cash flowing. While rents adjusted slightly, demand for apartments remained strong.
During economic downturns, people often downsize from homeownership or high-end rentals into more affordable apartment housing. Multifamily properties continue generating income, even in challenging market conditions.
One major advantage of investing in multifamily real estate is better access to financing and tax benefits.
Financing advantages of multifamily:
Tax benefits of multifamily investing:
Many investors pay little to no taxes because of the powerful tax strategies available in multifamily real estate investing.
One of the biggest myths in real estate is that you need perfect credit, tons of cash, or years of experience to invest in multifamily properties. The truth is, multifamily investing is a team sport.
If you have:
Banks look at both the property’s ability to generate income and the experience of your team, which means you can leverage partnerships to qualify for larger deals.
Unlike house flipping or short-term rentals, multifamily real estate investing provides predictable, long-term income.
With house flipping, every January 1st, you start from scratch.
With multifamily properties, every 1st of the month, you have rent checks coming in.
This is what makes multifamily real estate the ultimate vehicle for financial freedom. Instead of constantly chasing new deals, you build a portfolio that generates passive income for decades.
If you’re considering real estate investing, the best way to get started is by learning from experienced investors who have already built successful portfolios.
One of the most recognized names in multifamily real estate investing is Rod Khleif. With over 40 years of experience, 2,000+ units owned, and students who collectively own over 260,000 multifamily units, Rod is one of the most respected real estate mentors in the industry.
His coaching and training programs have helped thousands of investors:
Interested in learning directly from Rod? Check out his free real estate coaching resources.
If you’re serious about real estate investing, multifamily properties offer the best combination of cash flow, scalability, and long-term stability.
Q: Why should I choose multifamily investing over single-family homes?
A: Multifamily allows you to scale faster, reduce risk, and manage properties more efficiently. One building with 10 units is far easier to oversee than 10 houses spread across different neighborhoods—and it typically cash flows better, too.
Q: Isn’t multifamily investing too expensive for beginners?
A: Not at all. Multifamily is a team sport. You can partner with others to bring in capital, experience, or credit. Many of our students have closed their first deal by leveraging strategic partnerships and creative financing.
Q: How does multifamily perform during a recession?
A: Historically, multifamily has outperformed other asset classes during downturns. When the economy dips, people still need a place to live—often downsizing from homes into apartments. That demand keeps rents relatively stable and units filled.
Q: What financing options are available for multifamily investors?
A: Multifamily loans are based more on the asset’s income than your personal credit. That means if the deal makes sense, lenders are interested. You can also access larger loans, partner up, and take advantage of non-recourse financing options.
Q: What are the tax benefits of multifamily investing?
A: Multifamily comes with some of the strongest tax advantages in real estate. You can use depreciation, cost segregation, 1031 exchanges, and mortgage interest deductions to reduce your taxable income—many investors pay little or no taxes legally.
Q: How do I start investing if I have no experience?
A: Start by educating yourself, building your network, and aligning with a mentor or experienced operator. You can also start small with a duplex or fourplex, or even join a syndication as a passive investor to get in the game and learn from the inside.
Q: Do I need a property manager for multifamily?
A: For small properties, you might self-manage in the beginning. But once you scale, hiring a professional property management company will free your time and ensure operations run smoothly. It’s a smart move that allows you to grow faster.
Q: What’s a good first step to take right now?
A: Tune in to my podcast, “Lifetime CashFlow Through Real Estate Investing,” and download our free guide to multifamily investing. Surround yourself with like-minded people, get clear on your goals, and take that first step. You’re closer than you think.
Q: How do multifamily returns compare to flipping houses?
A: Flipping is transactional. You get paid once, then you start over. Multifamily creates consistent monthly income and long-term equity growth. It’s the difference between a one-time check and a lifetime of cash flow.
Q: How long does it take to see results in multifamily investing?
A: With the right guidance and massive action, I’ve seen students close their first deal in 6–12 months. The key is to stay focused, stay educated, and stay connected to a proven system.
Want to start investing in multifamily real estate?
Check out Rod Khleif’s podcast to learn even more!
Disclaimer: This article was written with the help of AI and reviewed by Rod and his team.
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