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When 3.5% Cash Flow is More Attractive Than 5% Cash Flow – Understanding Tax Equivalent Yield

Why should an investor 1031 exchange into a 3.5% projected cash flow multifamily DST instead of the seemingly more attractive 5% net lease DST featuring a FedEx, Tractor Supply, Dollar General, Burger King, or CVS Pharmacy? The answer comes down to the benefits of real estate depreciation and tax equivalent yield.

November 30th, 2022|Articles|