THE FUNDAMENTAL DIFFERENCES BETWEEN RESIDENTIAL AND COMMERCIAL MULTIFAMILY

JAN 18, 20269 MIN
Daniel Jevaux Podcast

THE FUNDAMENTAL DIFFERENCES BETWEEN RESIDENTIAL AND COMMERCIAL MULTIFAMILY

JAN 18, 20269 MIN

Description

<p>Residential and commercial multifamily properties may look similar on the surface, but they operate under <strong>very different investment logics</strong>. In this episode, we break down the <strong>fundamental differences between residential and commercial multifamily</strong>, and why understanding those differences is critical for serious investors.</p><p>We discuss how banks value each asset class, how income and risk are assessed, and why commercial multifamily is driven by <strong>cash flow and Net Operating Income (NOI)</strong> rather than comparable sales. The episode also explores financing structures, scalability, operational complexity, and how each strategy fits into a long-term portfolio.</p><p>Topics include:</p><ul><li><p>How residential vs commercial multifamily are valued</p></li><li><p>Income, NOI, and cap rates explained</p></li><li><p>Financing and leverage differences</p></li><li><p>Risk, scale, and operational management</p></li><li><p>When residential makes sense — and when commercial is the better move</p></li></ul><p>This episode is for investors who want to <strong>move beyond surface-level comparisons</strong> and understand how to choose the right multifamily strategy based on structure, risk, and long-term goals.</p>