Multifamily investing continues to be a strong option for building long-term wealth, but knowing where and how to invest is key to making it work. In this episode of Zen and the Art of Real Estate Investing, Jonathan sits down with Mike Madsen, Vice President of Acquisitions and Economics at RealSource Residential. With over $1 billion in investments and more than 6,300 renovated apartments under their belt, RealSource focuses on sustainable, data-driven growth in the multifamily space.
Jonathan and Mike explore why multifamily remains a solid investment choice, with Mike offering a clear-eyed look at the housing market and where it’s headed. They talk about the ongoing housing shortage, how that demand continues to push rents upward, and the criteria Mike uses to evaluate new markets. Drawing from his own family’s history in real estate, Mike shares why he gravitates toward value-add properties and how to reduce risk in multifamily deals. He also breaks down the metrics he relies on, the amenities tenants prioritize today, and how RealSource Residential supports investors in finding the right opportunities.
You’ll hear more about:
- While the past few years have experienced turbulence, especially with cap rates and interest rates–many areas are experiencing growth again. Multifamily is still a strong investment.
- Mike uses criteria like expense ratios, property taxes, and insurance costs to evaluate a market outside its growth.
- Value-add properties have enormous appeal because adding small renovations can offer tremendous value to tenants without overextending capital.
Multifamily properties still offer tremendous potential for investors. Mike Madsen shares how you can evaluate what to look for in a property to ensure your money continues to work for you.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/235/.