This type of product carries high risk. 

Hey Nathan, Most portfolio lenders will want to see that the properties are in the same location and are the same property type.

Hi Alex,Thanks for the mention.Unfortunately, investors sometimes expect providers to subsidize all loss of income incurred on a property which isn't feasible.We do our best to minimize costs and in many instances "eat a cost" that we shouldn't.Can't control "acts of God" or the weather/other people lolAs we all should know, there are ups and down's with real estate investing.Business is easy and people make it difficult as the saying goes.Our PM never just throws "a body" into a property just to call it "tenanted"Why?

These types of things are becoming more and more common in cities throughout the United States.

DSTs function as investment vehicles that hold ownership of income-generating properties, granting investors fractional ownership in various types of commercial real estate such as apartments, self-storage facilities, build-for-rent properties, and NNN (triple net lease) properties.

. ($20k land and $100k building)Over 13 years you depreciate about $50k.You sell for $200k net and buy a $500k property ($400k building $100k land)You bought $300k more building and have $50k left from first property so your new basis for depreciation is $350k that you depreciate over 27.5 years.Now that I type it out, an easier way to get to this answer would be just take the new building value and subtract your total depreciation taken so far and that’s your answer. ($400k new building minus $50k taken already equals $350k)

Now I do want to throw what my guess is out there, which is since he sold the property last year he is now buying into the LLC which owns the property, he cannot take his old basis or use this type of exemption.

What made you interested in investing in this type of deal?

What else macro-economic factors do these type of deals hinge on?

Purchase price: $1,500,000 Cash invested: $13,000,000 this project is currently under construction it is a 90 unit ground up build of market rate apartments with a student housing element What made you interested in investing in this type of deal?