MULTIFAMILY REAL ESTATE
KEY BENEFITS:
Steady Cash Flow: Predictable rental income, consistent returns.
Demand-Driven: Essential housing need, stable demand.
Inflation Hedge: Rents and values rise with inflation.
Value-Add Opportunities: Improve property, boost returns.
Leverage Potential: Amplify returns with debt.
Tax Advantages: Depreciation and cost segregation.
Sample Properties
Asset: 120-unit Class B property in a high-growth Sunbelt city
Hold Period: 5 years
Projected Net Returns:
IRR: 15–18%
Equity Multiple: 1.8–2.0x
Preferred Return: 8%
Asset: 120-unit Class B property in a high-growth Sunbelt city
Hold Period: 5 years
Projected Net Returns:
IRR: 15–18%
Equity Multiple: 1.8–2.0x
Preferred Return: 8%
Asset: 120-unit Class B property in a high-growth Sunbelt city
Hold Period: 5-7 years
Projected Net Returns:
IRR: 15–18%
Equity Multiple: 1.8–2.0x
Preferred Return: 8%
Our projected IRR The average annual return over the life of the investment, factoring in when cash is received. , Equity Multiple Your total cash returned divided by your original investment (e.g., 2.0x means double your money). , and AAR Total return divided by the number of years — shows your average yearly gain. are all based on conservative underwriting.
Risk Mitigation
Risk
Mitigation Strategy
Rising Interest Rates
We favor low to moderate leverage (<60% LTV), and often lock in fixed or capped debt.
Rent Control Policies
We invest in landlord-friendly states and thoroughly vet local legislation before entering a market.
Oversupply
We target metros with job/population growth and undersupplied submarkets.
Operating Costs / Insurance Spikes
Sponsors budget 5–10% annual escalators and secure multi-year insurance policies.
