Articles

Here you will find several articles about the benefits, process, and considerations of investing in multifamily properties. Become better educated and learn about the latest trends in the multifamily industry. Check back often to see what’s new.

Multifamily Value Gain Formula

Apartments present investors with 4 ways to capture an equity return: Equity appreciation Operational cash-on-cash returns Debt paydowns funded by renters An income tax shield provided by tax depreciation Cash-on-Cash Return The cash-on-cash return is the annual cash distribution from the investment divided by the equity investment made by each investor. Appreciation of value is

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Real Estate Returns vs. the Stock Market

Average annual returns in long-term real estate investing vary by the area of concentration in the sector. Average 20-year returns in commercial real estate slightly outperform the S&P 500 Index, running at around 9.5%. Residential and diversified real estate investments do a bit better, averaging 10.6%. Real estate investment trusts (REITS) perform best, with an

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The A, B, Cs, and Ds of Property Classification

Multifamily investment properties have four main classifications – A, B, C and D. These classifications are used by investors, lenders, and brokers to help communicate the quality of an investment property or area. While not hard and fast rules, there are several key indicators that help distinguish between the different classifications. Factors that go into

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The Tax Advantages of Residential Real Estate Investing

As you consider how real estate investing may help you to reduce or defer your income taxes, please consult your legal and tax advisors about your own situation. Tax advice should be customized. (The comments provided here do not constitute specific legal or tax advice.) The United States income tax laws and regulations contain provisions

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10 Concepts You Should Know Before Investing

We target to achieve annual cash flow yields of 5-7% or more, and overall returns of 12-15% per year – all while investing in a relatively low risk asset class. Of course, returns are not guaranteed so do your due diligence. You must be an accredited or sophisticated investor (under SEC definitions) to invest. Our

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7 Advantages of Multifamily vs. Single-Family Investing

Having owned both single-family and multifamily investment properties, we have found several advantages of multifamily investing. While money can be made with both property types, one of the main advantages of multifamily is the time saved. Instead of spending limited time on several single-family deals, multifamily properties allow investors to make more efficient use of

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Improving Your Life Through Multifamily Real Estate

Let’s face it, we want to be financially secure. We may want a larger home. We may want to send our children to the best colleges. Many of us have dreams of comfortable retirement years spent traveling around the world. Reaching such goals will take money. Yet, we probably don’t relish the idea of giving

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Three Approaches to Real Estate Value

Real estate can be valued or appraised using three different methods: 1. The Cost Approach – The cost to replace or reproduce the improvements plus land cost. This method is typically used for valuing new construction. 2. The Sales Comparison Approach – Comparison of other recently sold properties that are comparable in size, quality, and

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Demographic Trends to Watch

Perhaps the most discussed trend in commercial real estate in recent years has been the Millennials, the age cohort who are changing work and living arrangements across the nation. A relatively less covered demographic trend of greater size and perhaps importance is the aging population. According to data from the U.S. Census Bureau and analyses by the Lakemont

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