CHARLIE MIKE MONEYFree 1-page guide
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Lesson · Real estate · investing

One roof. Many rent checks.

Multifamily lets you scale faster than single-family — forced appreciation you control, economies of scale, and cash flow that compounds.

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25%
MAX RATE ON RECAPTURED DEPRECIATION WHEN YOU SELL

How it works

The four-filter buy box

1
150 units or moreFull-time onsite staff pencils out
2
Cash flowing at closingNot a turnaround or a development bet
3
Landlord-friendly stateEviction and lease law you can operate in
4
Strong in-city locationRenters who can absorb rent growth

WORKED EXAMPLE

Ten million dollar property, 27.5-year clock

Building basis, about 80%$8,000,000
Annual depreciationAbout $291,000
Year-one cash flow$300,000
Taxable incomeNear zero

Key points

Rent growth drives the price

✓
Value follows net income
✓
New supply is the threat
✓
Land and entitlements
✓
Permits and approvals
✓
3 to 4 years to deliver
✓
Housing demand persists

How it works

Stop renting from a stranger

1
Price your own spaceCompare rent paid to a mortgage payment
2
Look at SBA 504 or 7(a)Owner-occupied deals can go low down
3
Rent to your own entityRepairs and interest become deductible

WHO CAN USE THE LOSS

Passive losses have rules

Passive investorOffsets passive income
Income under phase-outUp to $25,000 may apply
Real estate professionalBroader offset if tests met
Unused amountCarries forward to later years

Free download

The Multifamily Real Estate field guide — one page

The strategy, the checklist, the key numbers, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

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Field guide · PDF

Multifamily Real Estate

Cliff notes + checklist + the law

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The law behind it

Primary sources

Verify against the source before you rely on it. This is education, not legal or tax advice.

26 U.S.C. Sec. 168 — Depreciation (MACRS) — the deductions that shelter rental income, and the basis for cost-segregation.law.cornell.edu/uscode/text/26/168
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