![]() ![]() The government wants to incentivize housing because of how important it is. For all of these reasons as well as the multiple risk-mitigation measures we have in place, we feel housing has a great risk-adjusted return. This means that even when new supply enters the market, they're unable to provide our affordable rents so it doesn't threaten demand for our units. We also ensure that we purchase multifamily at a low basis – much lower than what it costs to build new housing – even after we spend improvement dollars. Because our value-add strategy increases cash flows through improvements, we're not reliant on market conditions to improve to provide good returns. This increases the cash flow throughout the life of the investment.Īll investments have risk, but we particularly like housing because shelter is one of the most important needs. Because of our Value-Add strategy, we are purchasing a property and spending improvement dollars to provide a better class of housing for our tenants. Having to change out an air conditioning unit on a single-family house could wipe out an entire year of cash flow, but in multifamily, it's absorbed by the other units. This means that even if one is being turned over to new tenants, the others will still be occupied. After all, there are more units to rent out. But the cash flow from multifamily investments is even steadier than that of single-family homes. ![]() Real estate is a popular way to get consistent cash flow, no matter the type of property. ![]() Explore some of the reasons that multifamily real estate is one of the best passive investments. It lets you take advantage of all the benefits you would have with a single-family real estate investment and get a few additional ones. Among various passive investments, multifamily real estate stands out. Passive income streams are an excellent way to expand your income with minimal effort. ![]()
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