WHY MULTI-FAMILY?

Cash Flow

Multi-family properties produce positive monthly cash flow.  We target properties that can produce healthy cash flow on day 1 with room to significantly increase via operational improvements.

Forced appreciation

Multi-family properties are valued on a multiple of net operating income.  As operations improve and the property’s net operating income increases, the value of the property increases in line with the cap rate (market multiple). For example, increasing annual NOI by $100,000 in a solid market would typically result in a $1,333,000 increase in property value. Through a value-add strategy, these gains are more reliable and predictable than investing in the stock market or single family homes.

Market appreciation

We target growing markets with healthy fundamentals and room for rents to continue increasing.  We prefer markets with tailwinds, but always treat market appreciation as a bonus, it’s not central to our value-add strategy.