Why Multifamily DSTs Outshine Single-Tenant DSTs
For 1031 exchange investors Delaware Statutory Trusts or DSTs offer tax deferral and passive income but not all DSTs are equal. Here's why: 1. Diversified Revenue Multi-family DSTs spread income across many leases if one tenant leaves in a 200 unit property a 2% vacancy barely dents your cash flow. Single tenant DSTs like a Walgreens rely on one tenant if they go bankrupt you lose all income until a new tenant is found. 2. Bankruptcy Protection Single tenant DSTs are vulnerable to tenant failure. Think Sears or Rite-Aid. Multi-family DSTs reduce this risk with hundreds [...]