We love multifamily apartments as an investment due to low volatility; providing the best returns of all commercial real estate and it is a great diversification asset with a low correlation to stocks.

Reason 1: Growing, Long-Term Demand for Workforce Housing

  • Baby Boomers are turning to apartment rentals in retirement
  • Millennials cannot afford Single Family homes and like the flexibility of renting
  • Growing immigrant population chooses to rent.

Reason 2: Fixed Supply of Workforce housing that was built in the 60’s to 90’s

  • New construction costs require a significant rental premium vs. older properties
  • Building NEW Workforce housing requires government subsidies.

Reason 3: Predictable cash flow during the hold period

  • Properties with low vacancies can provide a solid, predictable return
  • Smart capital investments that allows management to increase rents can increase cashflow.

Reason 4: Appreciation of the Property

  • Monthly pay down of the debt owed
  • Forced appreciation can occur with changes that increase Net Operating Profit

Reason 5: Leverage of your Investment reduces risk and increases returns

  • Low minimum investment allows you to invest in several projects.
  • Lenders will provide debt that leverages the equity investment 2 to 1 at very low rates.
  • Properties, 100 units+, have the scale to afford professional property management

Reason 6: Tax Advantages

  • Depreciation of the property allows investors to defer paying taxes on significant quarterly cashflows until the sale of the property.
  • Refinancing the appreciated property midway through the holding period to return a significant amount of the original investment to investors is a nontaxable event.