Middle Door Homes
Your building’s next chapter
The middle door between selling and holding. Keep your equity, hand off the management, and defer the tax.
Keep your equity intact
0%
taxes at contribution
Diversify your ownership
8-12%
target annual return
Collect truly passive income
30,000+
units of experience
Selling costs you 30-40% of your gains. Holding keeps you a landlord. Middle Door Homes is the third option.
Sell
30-40% of gains lost to tax
Hold
Tenants, repairs, and debt stay your job
Middle Door
Your full equity, working in a diversified portfolio
Who this is for
Built for investors who have earned a better next chapter
You have built meaningful equity in a single asset. A traditional sale gives up 30-40% of your gains to tax. A 1031 keeps your wealth concentrated and the work on your plate. Middle Door Homes offers a third option.
- Own one or more 2-49 unit multifamily buildings
- Held 5+ years, with a large gain built up
- Want passive income and long-term upside
- Looking for a tax-efficient way out
- Ready to hand off the day-to-day
The math, illustrated
On a $1M building, about $200K more of your equity keeps working.
Same building, same mortgage payoff, same closing costs. The difference is the tax you do not pay at closing.
The 721 exchange
Three steps to passive ownership
A §721 exchange lets you contribute your building to a partnership for ownership units, with no capital gains or depreciation recapture at contribution. It is the same tool large REITs have used for decades to buy from owners who did not want to sell. What is new is applying it to buildings your size.
01
Contribute your building
Instead of selling, you contribute your building under Section 721 of the tax code. No capital gains tax is due at contribution.
02
Receive a passive ownership stake
Your equity becomes ownership in a diversified portfolio of neighborhood buildings. You stay invested in what you know, without running any of it.
03
Collect ongoing distributions
Our team handles all asset management and operations. You receive regular distributions from a diversified portfolio, with the long-term goal of growing income over time.
Our team
Billions of dollars of institutional housing experience
Our team has operated 30,000+ units across some of the largest residential platforms in the country. We built Middle Door to bring that institutional playbook to multifamily owners, and to offer them a structure that, until now, only large real estate institutions used.
Team experience from
Find your path
For property owners
Keep your equity working, without the work
Contribute your building and receive ownership in a diversified portfolio of income-producing buildings: professional management, quarterly distributions, and no tax at contribution.
Learn how it works →
For brokers
A real estate commission for representing your client's sale
Represent your client's building sale through a 721 exchange. We work with licensed real estate brokers whose clients want a tax-deferred transition to passive ownership.
How brokers work with us →
For financial advisors
A tax-efficient solution for your clients' real estate
Help clients with embedded gains transition from active landlord to passive owner, without triggering a taxable event.
How advisors work with us →
You built something real. Let's make sure it keeps working for you.
Send us an address for a personalized valuation and proposal.