"Several real estate investors whom Business Insider has spoken with are prioritizing this type of property, particularly in 2025. "Prices and interest rates have essentially doubled in many markets in the last four or five years," said Josh Lupo, who invests in multifamily properties in upstate New York with his wife, Ali. The couple achieved financial independence after paying off six figures in student loans, partly thanks to their real estate portfolio."
"Connor Swofford and Pieter Louw, childhood friends who began buying real estate together in 2024, have scaled to over 20 units by purchasing, renovating, and renting multifamily properties in Buffalo. While they initially purchased a few duplexes, they're now shying away from doubles and focusing on larger multifamily properties with at least three units. "The cash flow and cap rates are a lot better," said Louw, at least in their market. "Just looking at the numbers over the last year, it's a more lucrative and safe investment.""
Multifamily properties house multiple separate families within one building, including duplexes, triplexes, and fourplexes. Rising prices and interest rates have reduced the viability of single-family long-term rentals in many markets. Multifamily investments, especially properties with three or more units, offer stronger cash flow and higher cap rates compared with single-family rentals. Financial advantages include acquisition discounts, economies of scale, and lower per-unit maintenance costs. Owner-occupied financing and house hacking enable beginners to enter multifamily investing with reduced capital requirements. Renovation and rental strategies can scale portfolios efficiently, producing stable income and supporting faster paths to financial independence.
Read at Business Insider
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