Multifamily value-add real estate investments can generate consistent cash-on-cash returns and tax efficient distributions which help to supplement income in a diversified investment portfolio.
Appreciation Potential
Multifamily value-add investments have demonstrated strong long-term appreciation potential which, when coupled with tax efficient cash flows, creates an attractive after-tax total return over the life of the investment.
Inflation Hedge
Multifamily real estate serves as an exceptionally strong hedge against moderate inflation. The asset class benefits from several inflation-protective characteristics such as short-term lease structure, fixed rate debt structure and the fact that housing is an essential need with consistent demand.
Low Correlations to Equities and Fixed Income
Multifamily real estate exhibits remarkably low correlations to traditional asset classes such as public equities and fixed income, making it an excellent portfolio diversifier.
Tax Efficiency
Multifamily value-add real estate investments offer exceptional tax efficiency for investors primarily through depreciation deductions that shelter cash flow from taxation. Additionally, investors can accelerate these benefits through cost segregation studies and leverage strategies like 1031 exchanges to defer capital gains taxes and significantly reduce their overall tax burden while building wealth through appreciating assets.
Sustainable and tax-efficient multifamily investments that transform underperforming properties into thriving, institutional-quality assets.
