As lending rules get tighter and tighter we need to look at alternative ways to keep our money working hard. Multifamily dwellings investing has proven to be one of the most historically stable asset classes-missing the peaks, but not seeing the valleys. Expect steady cash flow and high returns on investment and no limit to the number of buildings you can invest in.
Buy low and sell high is the goal but the nice thing about multifamily is being able to increase the value by improving the overall performance of the business. An example would be to put in water saver shower heads to reduce your water bill therefore increasing the net return and adding value to the property. Another example would be to install vending machines to increase the total revenue or have cable included and add a slight increase to the rents. Of course just reducing your annual vacancy and maximizing your potential rents will help the value as well. After a few years you can show the bank the increased value through a few simple changes and possibly refinance to get your capital back out and into the next asset.
Yes there is more to consider in regards to capital expenses and other challenges with this type of rental but with the proper team and planning you will do just fine. Allowing your future self to thank you and retiring early will make it all worthwhile.