Multifamily workforce housing with upside potential – Buildings with 5 units or more are appraised based upon their profitability (Net Operating Income) instead of sales comps. This provides an amazing opportunity for us to “force appreciation” by cutting operational expenses and often improving the finishes within the property, directly leading to an increase in appraised value. This not only strengthens our cash flows but provides an opportunity to refinance our capital back out for use in the next real estate investment.

Low cost 1-4 unit workforce housing cash purchases – We typically find small 1-4 unit deals off-market or through pocket listings within our agent network. Due to the fact that they are often too small to finance with a conventional mortgage or are otherwise discounted due to their condition or the seller’s desire for a quick sale, we pay cash or obtain seller financing for these deals. However, they have immediate equity wrapped into them so once we build a portfolio of these properties in a given geography we are able to refinance them with a blanket mortgage to repurpose the capital for the next investment.