Is Multi-Family Investing Still Worth It in 2025?

[Robert Ellis]

Hey everyone! I’ve been diving deep into multi-family and apartment investing lately and wanted to get some thoughts from the community. With interest rates shifting and market conditions constantly evolving, do you think it’s still a solid strategy for long-term wealth building?

What have you seen working in today’s environment—are you focusing on Class A, B, or C properties? Also, how are you approaching property management and ensuring cash flow remains steady, especially with rising operational costs?

[Brian Burke]

It depends on how you define multifamily investing.  Small stuff, like duplexes, 4-plexes, even 20-unit type of stuff is still viable for wealth building over the long term if you can find long-term financing such as local bank debt, and you are in a decent rental market.

If you define it as large multifamily, such as 100-unit and up apartment complexes, it gets more complicated.  This sector has been virtually un-investable for over three years, and remains so today.  It pains me to say it because this has been my primary business for over two decades and no one likes to see their industry non-viable, but I just have to call balls and strikes.  I sold 3/4 of my portfolio in 2021 and 2022 and my only wish is that I could have sold it all.

Maybe in a year or two I'll see the signs that point to a good re-entry point.  Today is certainly better than any time in the last three years, but there is just no rush--bottoming will be a process, not an event.