Multi-Family Invest’s Investment Strategy

Our acquisition criteria serve as a guide to identifying undervalued multi-family properties suitable for acquisition, value optimization, management, and disposition.

Market Segments

  • Age: Focusing on the 18-35-year-old market segment, comprising 22% of the U.S. population
  • Income: Targeting renters with annual earnings of $40,000 or more
  • Price: Ensuring rent is 30% or less of the median income
  • Retiring Baby Boomers: Catering to those seeking maintenance-free multi-family living
Modern apartment buildings on a sunny day
Shot of a high rise tall building

Property Criteria

  • Focus on multi-family residential apartments
  • Preference for pitched roof construction
  • Occupancy above 80% is required, except for well-located properties presenting value-add opportunities

Target Values

  • Size and Price: 5+ units in the $500,000 – $50MM range
  • Returns: Aiming for 7-10% Cash on Cash, with a Minimum Debt Service Coverage ratio of 1.25
  • Type: C- to B+ properties located in C- to A areas
  • Property Vintage: Built-in 1975 or later
  • Location: Focused on emerging market areas displaying strong economic growth indicators
Apartment residential house
Modern luxury apartment house

Emerging Markets & Acquisition Practices

We prioritize emerging markets with expanding job opportunities and local economies. Our acquisition practices include building relationships with local listing brokers to access off-market properties and conducting thorough due diligence to ensure investment strategies are achievable.

Emerging Market Characteristics

  • Influx of people and job creation
  • Rising rents and property values
  • Markets beginning to absorb oversupply
  • Local government commitment to job attraction
Residential apartment buildings
New block of flats

Value-Add & Path of Progress Strategies

We look for specific opportunities to increase cash flow, known as "Value Plays" or "Value Adding Components," and focus on investing in the Path of Progress for maximum returns.

Value Plays We Capitalize On

  • Owner mismanagement
  • Deferred maintenance
  • High vacancies
  • Below market rents
  • Inefficient management companies
Modern residential skyscraper
Modern residential buildings

Path of Progress Indicators

  • Rapid property appreciation
  • Concentration of new construction
  • Attractiveness to families and individuals