Investing in Large Apartment Communities

Larger apartment buildings carry more risk but also a significant revenue stream.  It really comes down to buying right and applying an appropriate strategy for renovation if needed, maintenance, staffing, marketing and handling tenant turnover.  You will also want to consider your level of involvement or turn over to a management company. Here are a few things to consider:

Benefits

  • Resilient to economic cycles
  • Multiple income streams
  • Pricing based on cash flow
  • Holds resale value
  • Outsource management to alleviate 
  • Create passive or active income
  • Tax advantages
  • Easier to finance

Know before you buy

  • More Expensive to buy and maintain
  • Expense of full time management
  • External effects
  • Miscalculating expenses and cash flow can cost you
  • Know market for resale or rental rates
  • Obtain evaluation & assessment to determine costs for maintenance & repairs
  • Subject to additional fees from the local municipalities
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