“

America is becoming a nation of renters.

Home ownership has fallen 4.5% since 2006 while rentership has increased 8.7%. Every 1% drop in home ownership translates into +1 MM more people added to the rental pool.

Investing in multifamily real estate can provide tax advantaged passive income of 7-15%/yr.

Yearly cash flow can be structured as a return of principal and not taxable while depreciation from real estate can be used to offset passive income. Through 1031 exchanges, capital gains can be deferred or eliminated (upon death).

Please consult your CPA on any tax related matters.

Multifamily offers economies of scale that single family investing can’t touch. With the same amount of work to acquire 10 units as 100, scale is crucial in multifamily investing.

Apartments are managed by 3rd party professional property managers with leasing, maintenance staff and regional oversight. They know the market, the competition and how to treat tenants like clients.

Apartments have financial statements and are bought and sold based on these financials like a normal business.

If you own a single family home and your tenant moves out, your vacancy rate spikes to 100%. With a 100 unit apartment complex, 1 tenant moving out isn’t nearly as material.

Single family homes trade on comps where the seller has no control over the market. Multifamily owners can boost the value of the asset by more effective management (increasing rents and lowering expenses).

Loans are typically non-recourse and supported by the government to provide affordable housing.

Apartment investing provides diversification benefits to an investment portfolio.