Middle Door Homes
From active landlord
to passive investor -
without the tax bill.
You've built real equity in multifamily real estate. But between managing tenants, deferred maintenance, and the tax bill that comes with selling, the path forward isn't obvious. The §721 exchange gives you a better option - passive income, diversified ownership, and no taxable event.
0%
Taxes at closing
30,000+
Units managed by leadership team
8-10%+
Target annual return
Who we work with
Find your path
For property owners
Turn your building into passive income
A 721 exchange lets you convert your equity into a passive LP stake - institutional management, ongoing distributions, and no taxable event at contribution.
Learn how it works →
For brokers & partners
Full commission on off-market transactions
We pay 3-4% commission on every building we acquire. Most long-term owners don't list their properties - we help you unlock these transactions.
How to partner 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 →
Who this is for
Built for owners who have earned a better exit
Middle Door is built for multifamily owners who have held long enough that a traditional sale would trigger a significant tax bill - and who want a smarter path than selling, struggling with management, or scrambling through a 1031.
Own 2-49 units across one or more properties
Held 5+ years with meaningful embedded gains
Want passive income without giving up long-term upside
Done being an active operator and looking for a tax-efficient transition
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 small multifamily - giving individual owners access to an exit structure that has only ever been available to institutions.
Team experience from
Equity calculator
How much equity do you keep?
Adjust the sliders to match your situation. See how a 721 exchange compares to a traditional sale - line by line.
Building value
$1,000,000
Purchase price / cost basis
$350,000
Outstanding mortgage
None
Traditional sale
721 Exchange - Middle Door
With a 721 exchange you preserve
$165,000 more equity
compared to a traditional sale
Actual tax liability depends on your cost basis, depreciation history, and state of residence. This is illustrative only - not tax or legal advice.
The 721 exchange
Three steps to passive ownership
A 721 exchange is an IRS-approved strategy that allows you to contribute your building to a professionally managed portfolio, in exchange for a passive ownership stake - without a taxable event at closing.
01
Contribute your building
Instead of selling, you contribute your property through a 721 exchange - a tax-deferred transaction with no capital gains at closing.
02
Receive a passive ownership stake
Your equity rolls into a professionally managed real estate portfolio. You remain an owner, without management responsibilities.
03
Collect ongoing distributions
Our team handles everything. You receive regular income from the portfolio - and professional management works to grow it over time.