Investing in Apartment Buildings Instead of Houses
Purchasing apartments while starting your real estate career is a great way to begin. While buying an apartment in a busy city is not easy it has it ‘s benefits. Property Records Inc has great tips for making money when you purchase your first apartment building.
Access to Great Amenities
This is one of the most important factors you should consider. In order to have an easy time the apartment building that you are planning to buy should be closed to amenities.
What are good amenities? Good amenities are schools, hospitals, shopping centers, groceries, malls, and nearby freeways. Some buyers prefer a location that has entertainment like downtown. Where you could find clubs, cafes, restaurants, bars, beaches, and sightseeing locations.
Good Amount of Cash Flow
This is also an important factor to consider when you are buying the apartment building to rent it out. If this is what you want to do you have to do some research first.
You need to research the average rent rate around the area and city; you can’t charge $1,500 when the average cost is $900. Another thing you need to research is how much the average rent is for the type of apartment that way you’ll know if you should lower or raise the price.
For example, if the apartment is old and ran down the rent has to be lowered or no one will rent it out. If the apartment needs renovations to make sure to go ahead and do them as soon as possible because they could get worst and cost much more.
If the apartment building you is modern and up-to-date you could raise the price. Another way you could raise the price is by the location. If the property is downtown the rent automatically goes up.
How Old is the Apartment Building?
Like we said before if the building is old the price must go down or else you will have a hard time renting it out. Some apartment could be considered “historic” which means rent cost will be higher.
Some experts recommend not buying apartment buildings that are older than 20 years old as they require lots of maintenance. Buildings that are older than 20 years old are considered to be “out of style” and risky to live in.
Parking for Apartment Resident
If the apartment is located in heavy populated areas like Los Angeles, Atlanta, New York, and other cities where parking is a factor to consider. Many residents don’t pay rent AND pay extra for a parking space. Even if the resident doesn’t have to pay extra for parking the area could lack parking spaces and the new residents should be aware of.
These are only a few factors to consider, but of a curse, it changes by the location and property. Remember that buying a building is not a race, do your homework and research before deciding.