Multifamily transactions demand that all parties be sophisticated in regard to residential landlord-tenant matters, construction quality and standards, demographics, estoppel matters, and a variety of other facets that govern residential real estate landlords. Multifamily transactions hinge upon vacancy factors as well as the availability of cash flow to finance the anticipated debt service. Many swear by this type of investment, but those who engage in the commercial investments listed below rarely venture into multifamily. 

With retail, the viability of the businesses being run out of the facility makes all the difference. Unlike multifamily, investing in retail (commonly “strip malls”) is more business-like, and less likely to get personal among and between the parties. Retail investments often require capital to make improvements that benefit new tenants.