Buying a multifamily home, which is a residential property that has multiple units, can be a smart investment for several reasons:

Rental Income: One of the most significant advantages of purchasing a multifamily home is the potential for rental income. By renting out the individual units in the property, the owner can generate a steady stream of monthly income, which can help cover the mortgage and other expenses.
Lower Vacancy Rates: With multiple units in a single property, the chances of all units being vacant at the same time are low, compared to owning a single-family home. This means that the owner is less likely to experience extended periods without rental income, which is beneficial for their cash flow.
Economies of Scale: When you own multiple units in one building, you can take advantage of economies of scale. This means that certain expenses, such as maintenance and repairs, can be cheaper when you own a multifamily home because you can split the cost of these expenses among multiple units.
Appreciation: Real estate has historically appreciated over time, and owning a multifamily home allows the owner to take advantage of this trend. Over time, as property values increase, the owner's equity in the property will also increase.
Tax Benefits: There are also several tax benefits to owning a multifamily home. The owner can deduct certain expenses, such as mortgage interest, property taxes, and repairs, from their taxable income. Additionally, depreciation can be claimed on the property, which can lower the owner's taxable income even further.

Overall, buying a multifamily home can be a smart investment for those looking to generate rental income, take advantage of economies of scale, and build equity in a property. However, it's important to consider the costs associated with owning a multifamily home, such as maintenance and repairs, as well as the responsibilities that come with being a landlord.