The basic meaning of the economic term, “economy of scale” is that there is a fundamental cost-saving benefit to being bigger.
A Multifamily property is perceived somewhat differently from a single-family property because of its commercial nature. It is managed and run as a business and therefore a significant part of its value is determined in the same way as a Business. This means that the value is determined in the same way as a business. This means That the value is much more in your own hands.
A tenant vacancy in a single-family rental property will bring your cash flow toa grinding halt. In contrast, if one of your units in your multifamily property is vacant, the impact on your cash flow will be minor because you will still be collecting rent from all the other units
One of the most significant tax advantages for multifamily property owners is somethimg called “depreciation deduction”, in effect it can allow you to deduct a large amount of the income your property generates.