There are several forces in play which predict advantageous outcomes for multi-family investments.  Ramsey-Shilling recommends multi-family investments to its clients for the following reasons:

1. Demand continues to grow due to the lack of affordable housing, significant barriers to entry for new apartment buildings, and the continual population increase in Los Angeles County.

2. Apartments have become a very liquid real estate category, particularly as more foreign investors are rushing here to take advantage of the dollar’s devaluation.

3. An increasing number of people desire a live/work arrangement in which they can work out of the same address, allowing them to profit from renting out other units.

4. For investors who want to trade up, apartments readily lend themselves to 1031 exchanges.