Multifamily is invariably on hot. It is a favored asset class in many markets, especially in Los Angeles. While the multifamily is popular, some investors are steering clear because of the compressed cap rates and high competition from institutional players. Cash Flow Connections is one such investor, choosing to focus on self-storage product, where there are better returns. We sat down with Hunter Thompson, founder of Cash Flow Connections, for an exclusive interview to talk about his investment strategy away from multifamily.

GlobeSt.com: You have invested in multifamily in the past. Why aren't you investing in multifamily today?

Hunter Thompson: I have invested in multifamily in the past, but I haven't done so recently because it is very hard to find risk-adjusted returns in that sector, because it is so competitive. One of the advantages of self-storage is that the purchase prices typically aren't high enough to attract major institutional players, and the asset class isn't as sexy as some of the multifamily apartments out there. I am looking at the differential in the ability to achieve the returns that we are looking for by staying away from certain asset classes, most notably multifamily. It is just really challenging.