How Much Does It Cost To Buy A Small Apartment Complex
Mid-level cash on cash returns can be achieved in buildings with mid-level rents a little higher vacancy and working-class tenants.
How much does it cost to buy a small apartment complex. The final 2030 of the budget consists of soft costs according to the Brookings data. Youll see that Unit A is a two bedroom leased for 1500 per month to John Doe. Wow 30 lakhs is what you were looking for and is very well in your budget.
A manager cannot live on that amount unless they are managing many properties for a salary from a large management company. Also how do management cost only come to about 6000 for a year. Thats anywhere between 120 and 240.
For calculating labor cost and basic building components let us defer to the 2013 RSMeans data. The above figures place this construction at an 85 and 200 per square foot cost. However the national average stands at 125 for most contractors.
A flat fee company in the area charges her 50 a month to manage the apartment. Management fees vary greatly but typically fall in a range between 3 percent and 7 percent of the rent collected. In our portfolio we average around 100 to 150 profit per unit per month depending upon what market the asset is located and how much debt is on the asset.
Interestingly the Brookings data categorizes everything that isnt a land cost or a material or labor cost as a soft cost. But when it comes to the cost of an entire building complex theres more to simply crunching the figures based on the average unit cost. Energy Information Administration reports that the average apartment is 861 square feet which works out to a 24-foot by 35-foot space.
For example a twenty-unit property should deliver around 2000 per month in positive cash flow. You want to call the developer and book the flat as soon as possible. Apartment Building Cost by Type The type of apartment building you construct has an impact on the total costs mostly on the cost per square foot for construction.