Multifamily real estate offers several advantages, including consistent rental income, lower vacancy risks due to multiple tenants, economies of scale for property management, tax benefits such as depreciation, and long-term appreciation potential.

Investors typically earn returns through rental income, property appreciation, and tax advantages. Additionally, value-add strategies—such as renovations, improved management, or operational efficiencies—can increase a property’s value and cash flow, leading to higher returns upon refinancing or sale.

Some risks include market fluctuations, unexpected maintenance costs, tenant turnover, interest rate changes, and potential economic downturns that affect occupancy rates. However, strong due diligence, conservative underwriting, and strategic asset management can help mitigate these risks.

The typical holding period for multifamily investments ranges from 3 to 10 years, depending on the investment strategy. Some investors focus on shorter-term value-add plays (3-5 years), while others prefer longer-term holds (7-10 years or more) for stable cash flow and appreciation.

Yes, you can invest in multifamily real estate through a Self-Directed IRA (SDIRA) or Solo 401(k). These retirement accounts allow you to invest in alternative assets, including real estate, while enjoying tax-deferred or tax-free growth, depending on the account type. However, it's important to follow IRS rules regarding prohibited transactions and unrelated business income tax (UBIT). Working with a qualified custodian or financial advisor can help ensure compliance.

The minimum investment varies but often starts around $50,000 to $100,000.