Passive investing in multifamily refers to investing in multifamily properties without actively managing them. This can be done through investing in a real estate investment trust (REIT) that specializes in multifamily properties, or by becoming a limited partner in a partnership that actively manages a multifamily property.

The benefits of passive investing in multifamily include the potential for regular cash flow and the ability to invest in a tangible asset without the time and effort required for active management. However, it is important to thoroughly research any investment opportunity and understand the risks involved before committing to it.

There are several reasons why someone may choose to invest passively:

• Lower costs: Passive investing generally involves lower fees than active investing, as there is less research and trading involved.
• Consistency: Passive investments, such as index funds, aim to track the performance of a specific market index, rather than trying to beat it. This can provide more consistent returns over time.
• Simplicity: Passive investing is often considered to be simpler than active investing, as it does not require constant monitoring of individual stocks or trying to time the market.
• Diversification: Passive investing often allows for greater diversification of investments, as index funds typically hold many different stocks or other assets.
• Avoiding behavioral biases: Passive investing can help to avoid common behavioral biases, such as overconfidence and chasing performance, which can lead to poor investment decisions.

Multifamily properties typically generate a steady stream of rental income, providing investors with a predictable source of passive income.