Benefits of Investing in Multifamily Real Estate
Multifamily properties offer consistent cash flow, stability compared to stocks, significant tax benefits, and leverage opportunities, making them a compelling choice for diverse, long-term investment strategies.
Cash Flow
Following the settlement of all expenses, investors receive quarterly distributions.
Stability
Multifamily properties offer lower volatility and consistently outperform traditional stock investments.
Tax Benefits
Depreciation provides a valuable tax deduction, allowing you to retain a greater portion of your profits.
Leverage
Real estate investments enable leverage, allowing you to acquire a $10 million property with just $2.5 million in capital.
Our Acquisition Method
At R.B.40 Investments, LLC., our primary mission is to safeguard our investment partners' capital through a dedicated focus on multifamily properties. We concentrate on enhancing Class B and C apartment communities in secondary and tertiary markets across the country.
Historically, multifamily real estate has demonstrated resilience during economic downturns while offering substantial growth potential during upturns. Within this sector, Class B and C properties stand out as highly attractive investment opportunities due to the strong and increasing demand paired with a constrained supply of these units.
01 Market Segments
- Age: Individuals aged 18-35 represent 22% of the U.S. population.
- Income: Renters with an annual income of $40,000 or more.
- Price: Rental costs that account for 30% or less of the median income.
- Trend: Retiring Baby Boomers are downsizing and opting for maintenance-free multifamily living.
02 Property Criteria
- Multifamily residential apartments
- Pitched roof construction preferred
- Occupancy above 80% with the exception of properties that require renovation, providing properties are well located and present value-add opportunities
- Size and Price: 50+ units in the $4MM – $50MM range
- Returns: 7-10% Cash on Cash, Minimum Debt Service Coverage ratio of 1.25
- Type: C- to B+ properties located in C- to A areas
- Property Vintage: 1975 or newer
- Location: Emerging market areas with indicators for strong near and long-term economic growth
Acquisition Practices
At R.B.40 Investments, LLC., we prioritize forging strong relationships with local listing brokers to gain access to exclusive “pocket listings” and other bank-owned properties (REOs). Our acquisition strategy involves directly reaching out to property owners, rather than waiting for properties to become publicly available.
Investment Discipline
Our approach to asset selection is methodical and routine, focusing on key demand indicators such as job and population growth, demographic trends, supply absorption rates, and favorable local legislation.
Value-Add Strategy
We approach multifamily investments with a business mindset, aiming to maximize income and thereby increase property value. Upon acquiring an apartment complex, we identify targeted opportunities for enhancing cash flow through strategic “Value Plays” or “Value-Adding Components.”
Acquisition Practices
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Investment Discipline
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Value-Add Strategy
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