Buying an apartment complex as an investment is a multi-step process similar to buying an investment house but with a few extra steps. It’s best to research all aspects of apartment ownership by talking to other owners and researching zoning and permitting laws in your area. Once you have a good handle on the process, the next step is to look at some actual properties.
1. Find a Great Location
Steven Taylor Taylor Equities strongly believes location is everything in property rental. A great deal in a part of town no one wants to live in is a poor investment. However, finding a property that needs a little TLC with an awesome location is an opportunity to make money.
2. Scrutinize the Rent Rolls
These documents show the profit or loss for the building as well as information about individual units. This will help you understand exactly what kind of units are available and how many are currently rented out. In addition, you will be able to see when leases are up which is important if you plan to do renovations in each apartment.
3. Compare the Total Income With Other Properties
Do your homework to see how other complexes compare. Just because a property generates money doesn’t mean that it’s profitable. Make sure there is money left over after the operating expenses.
Owning an apartment complex can be a great source of passive income. However, there is upfront work to take into consideration. After that’s completed, the money should be there for the taking.