How To Purchase A Small Apartment Complex
There are also however some additional complications.
How to purchase a small apartment complex. Locate a building that has a positive cash flow based on the income its actually earning. That means that our investor would expect to earn a six percent return on the purchase price. Even though the risk for criminal activities might be less you still need security to keep you safe.
Are You Suited for Apartment Complex Ownership. Ask yourself what you want to achieve from owning an apartment complex and then work backwards to figure out how much income you need to generate. Pictures of the apartment complex.
You must give the lender information about the apartment complex when you apply so collect the following before approaching a lender. Since completing my first apartment syndication raising money from private investors to purchase 100 unit multifamily buildings a little over threes ago Ive completed an additional six deals. Description of the property eg number of units year it was built etc expected upgrades.
You might find the opposite problem with a smaller apartment complex. You must have a deeper knowledge of the managerial and financial aspects of owning an apartment complex. We also placed a cap on the use of the tenants utility usage.
Success in Real Estate Means Buying the Building That Needs Improvement. Lets assume that the cap rate for the apartment property in our example above is six percent. As NOI goes up your property value goes up.
5 unit apartments. Dave Lindahl is an accomplished real estate investor who has been involved in over 550 deals and controls over 240 million in real estate. Apartment complexes tend to be significantly more costly than smaller multi-family properties.