In today’s environment, multifamily valuations on stabilized properties are still too high to generate enough cash flow for many investors. By contrast, ground up development economics make more sense. California still has a major shortage of housing for middle wage earners, so the state encourages Build-to-Rent developments of affordable properties. Jared Jones, Co-founder of Middle Housing Partners, has a Private Equity fund that develops smaller multifamily, condo, or townhome projects that generate cash-flow and strong appreciation. These properties are in the California Inland Empire where demand for housing continues to outstrip supply.