Senior Vice President at CBRE shares practical guidance to help individuals make clearer decisions about apartment investing and ownership

LOS ANGELES, CA / ACCESS Newswire / January 8, 2026 / Senior Vice President and multifamily specialist John Boyett is calling out five common myths that keep everyday investors, families, and small owners from making better choices in apartment real estate. Drawing on years of experience in Los Angeles County and early exposure to rental properties in Napa, Boyett aims to replace fear and guesswork with practical steps anyone can use.

"Most people are closer to being able to invest in multifamily than they think," Boyett says. "The problem is not just the numbers. It is the stories they have heard about what it takes."

Below, Boyett breaks down five myths he sees most often.

Myth 1: "You have to be very wealthy to own an apartment building."

Why people believe it:
Most examples they see are large institutional owners and big funds. Social media also highlights the flashiest deals, not the small ones.

The reality:
Many multifamily properties are owned by families, small partnerships, and first time buyers who started with one modest asset. Entry points vary widely by market, building size, and partnership structure.

Practical tip:
Instead of asking "Can I buy a 50 unit building," start by asking "What could I buy if I teamed up with one or two trusted partners." Boyett advises, "Have a lender walk you through three sample deals at different price points. Seeing real numbers on paper is more productive than scrolling listings and guessing."

Myth 2: "Multifamily real estate is completely passive income."

Why people believe it:
The phrase "passive income" gets used heavily in books and videos. It sounds like checks arrive without effort.

The reality:
Even with a property manager, owners are making decisions about repairs, rent strategy, capital expenses, and refinancing. The income can be attractive, but it is rarely hands off.

Practical tip:
Before buying, block out one evening and write down every recurring task you can think of: leasing, maintenance decisions, renewals, accounting, lender communication. "If that list feels overwhelming, you either need the right partners or you are not ready yet. Better to learn that on paper than with a signed loan," Boyett notes.

Myth 3: "You should always chase the highest cap rate."

Why people believe it:
Cap rate is easy to compare and higher numbers look better at first glance. It feels like a simple ranking system.

The reality:
Higher cap rates often reflect higher risk: weaker locations, older buildings, heavier repairs, or more volatile tenant bases. A lower cap rate in a stronger area can create a better long term outcome.

Practical tip:
When you look at a property, ask yourself three questions: What has to go right for this income to hold. What could go wrong in the next three years. How easily could I re rent units if I lost tenants. Boyett explains, "A solid building in a strong location at a fair cap rate often beats a fragile deal with a flashy return on day one."

Myth 4: "Rising interest rates mean it is a bad time to invest."

Why people believe it:
Rate changes dominate headlines, and higher monthly payments are easy to see. It feels safer to do nothing.

The reality:
Rising rates change pricing and leverage. They do not remove all opportunity. Some sellers become more flexible. Some buyers with short term mindsets step back, creating openings for patient capital.

Practical tip:
Run each deal at more than one interest rate and more than one hold period. "If the numbers only work at the perfect rate, it is not a strong deal," Boyett says. Focus on downside protection and your plan to hold through cycles, not just your best year.

Myth 5: "You have to time the market perfectly."

Why people believe it:
Stories that get repeated are often about lucky timing: buying at the bottom or selling at the top.

The reality:
Most long term owners did not get every entry and exit perfect. Their results came from disciplined buying, patient holding, and steady management. Trying to pick exact highs and lows often leads to years of waiting on the sidelines.

Practical tip:
Choose one or two submarkets and study them every month for a year. Track a handful of buildings, list prices, and sale prices. "If you understand a few neighborhoods deeply, you are less likely to chase fads and more likely to recognize fair value when it appears," Boyett advises.

If you only remember one thing

Success in multifamily is less about finding a secret deal and more about seeing through bad assumptions. Start small, learn your market, respect the work involved, and make decisions from real numbers instead of myths.

"Good information does not guarantee a perfect outcome," Boyett says. "But bad information almost guarantees a poor one. Clearing out these myths is the first real upgrade most investors need."

Share this five myth list with anyone considering their first or next multifamily investment. Pick one practical tip, such as having a lender model three sample deals or tracking a single submarket for the next 12 months, and put it into action today.

Media Contact

John Boyett
info@johnboyettvicepresident.com
https://www.johnboyettvicepresident.com/

SOURCE: John Boyett