A great multifamily deal isn’t just about how you enter—it’s about how you exit. And yet, exit strategies are the most overlooked part of real estate investing.
Most investors obsess over cap rates, occupancy, and financing… but they forget to ask: How do we get out of this deal?
Why Exit Planning Should Start on Day One
The moment you buy, you should already know:
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When and how you plan to exit
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What market conditions trigger that decision
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How taxes, timing, and returns will be affected
Without an exit strategy, you’re not investing—you’re speculating.
3 Exit Strategies Explained
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Refinance & Hold
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Pull out cash tax-free, reset debt terms, and continue collecting monthly income.
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Best for cash flow investors looking to compound equity.
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Sale After Stabilization
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Sell the property after renovations and rent bumps when NOI is maximized.
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Ideal for value-add investors focused on IRR and velocity of capital.
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1031 Exchange
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Roll gains into a larger deal, deferring taxes while growing your portfolio.
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Powerful—but requires planning, speed, and legal execution.
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The Silent Killer: Poor Market Timing
Selling at the wrong time can wipe out years of gains. Great operators monitor:
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Cap rate compression/expansion
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Interest rate shifts
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Local job and population trends
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Buyer sentiment
A good exit isn’t just about when—it’s about why and how.
Bonus Tip: Underwrite the Exit First
Before you fall in love with a deal, ask: “Can we profitably exit in 3–5 years?” If the answer is murky, pass. Because a poor exit can turn a good deal into a bad memory.
