Is anyone here transitioning into commercial or multifamily in 2025/2026?

Question

I’m hearing from a lot of investors who are diversifying into larger projects for stability and scale. Curious what’s motivating your move — cash flow, appreciation, tax benefits?

Lee Burns · Answer

All of the above. I came to the realization last year that it's just more affordable (CRE financing has more/less better nuances than residential), less stressful, and makes more money (higher cash flow) in the long term as opposed to collecting 2~4 units every year. I never bank on appreciation, but I try to invest in neighbourhoods where appreciation is headed

Lee Burns · Answer

I was under contract for what would have been my first commercial property, a discounted 6 unit with good cash flow, but the deal fell through and I'm kind of glad it did. I lost a few grand in down payment and closing costs, but with ICE in Chicago, the government shutdown, 2 vacancies; and repairs needed I might have dodged a major bullet. If you want to know any other specifics, feel free to ask. I'm on the hunt again so maybe I'll have a story to tell soon

Joe S. · Answer

Care to share how your transitioning as far as the steps involved? Maybe even share a deal you if you’re comfortable with that. I’m always up to learning…:)

William Thompson · Answer

’ve been seeing the same thing, and for most people it isn’t just one reason — it’s a mix. The biggest driver I hear is stability. A single vacancy in a duplex hits a lot harder than a single vacancy in a 40-unit. Larger deals tend to smooth out the bumps.

Tax strategy plays a huge role too. Bigger projects usually have more components for cost segregation, which means deeper depreciation and better cash flow on paper.

Appreciation is part of it, but honestly the predictability and ability to force value through operations seem to be the real pull. With small properties you're at the mercy of comps. With larger assets, you're rewarded for running a tighter ship.

Curious what you’re seeing on your end — are people shifting for growth or just trying to steady the ship a bit?

Is anyone here transitioning into commercial or multifamily in 2025/2026?

Is anyone here transitioning into commercial or multifamily in 2025/2026?

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