There are so many different ways where you can actually walk away from a closing with money in your pocket.

Another advantage of apartments over single-family houses: tax-free money. When you're doing a multifamily building, you can do what's called a 1031 tax deferred exchange.

Here's the general idea of how this works:

You sell property A, and get to defer all those taxes so you're not paying any taxes on your profits. That allows you to buy a bigger property B because you have a bigger down payment. That will give you a bigger cash flow because you're buying a bigger property B.

After you sell B, you can take all the profits and put it into C and that will allow you to buy a bigger property C and create an even bigger cash flow.

It will be a combination of 1031 exchanges and market cycles that will allow you to catapult your way to wealth in a very short period of time.

The 1031 exchanges are an exit strategy and they're very important.

1. You need to have what's called a “like kind exchange”. That means you must go from real estate to real estate – multi-family to land, commercial to multi-family, single-family to multi-family –as long as it's like kind. You can't sell real estate to buy stock or other securities. You sell real estate to buy real estate.

2. You need to use an intermediary. That is somebody who does all the paperwork(which is great because we don't want to do it). The intermediary holds all the funds an transfers the funds. Two good intermediaries are Starker Services and Chicago Title.

3. When you sell property A, you've got to identify property B. It’s the property that you're going to replace property A with – it's called the replacement property. And you must do so within 45 days. When you sell property A, you need to close on property B within 180 days. You do those first four things and then you get to have Number 5, which is create massive wealth in a very short period of time.

The 1031 Exchange isn't some shady loophole that the IRS is going to catch onto and then shut you down. The IRS wrote it.

Here's another advantage of multi-family properties: You can do fewer deals and make more money. Here's what I mean: in your average single-family flip your profit might be between $3,000 and maybe up to $20,000. For the sake of this example, let's say it's $20,000. But your average multi-family flip, medium size, between 30 and 50 units, can give you a profit of $200,000! You'd have to do ten single-family flips to match that one multi-family deal! I don’t know about you, but I don’t want to work that hard.