How do multifamily properties do in recessions?

Description:  A description of how multi-family performs through a recession

Very, very well as a rule.  Real estate, overall, frequently is a “safe harbor” type of asset.

There are, of course, caveats to that.  One of them is to be very conscious to invest only in the right “kinds” of properties.  You’ve probably heard terms like “Class A” and “Class B” and “Class C” properties.  Really those terms just refer respectively to newer properties, slightly older properties in decent areas and to properties located in lower-income areas.  And a good way to make your odds of success even higher in the event that the economy swings to recession is to make sure your investments are focused only on Class A and Class B properties.  Yes, there is money to be made in the lower-income areas with Class C properties… but the risk is higher and the stress is MUCH higher.  Smart money will focus, if not exclusively, then almost exclusively, on Class A and Class B properties.

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