Home Investment Real Estate 101: Why You Should be Investing in Apartment Properties

Real Estate 101: Why You Should be Investing in Apartment Properties

by Louise W. Rice
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Invest in real estate, they said. It’ll be easy, they said. Well, what “they” probably didn’t tell you was about the vast amount of research and the variety of options you’d have to mull over before deciding which direction to go, right?

The good news is, it’s really not that complicated. The only thing you really have to do is to pick the investment option you prefer, then do research accordingly in order to get you the best return for your money.

The only problem is that there are a ton of options to consider.

Will you invest in land? How about trailer homes? Would you prefer vacation rental properties? Or, maybe you’re in the market to invest in a single-family rental property.

Each option comes with a number of attributes and elements when it comes to purchasing and investing in real estate. Here, we’ll focus on the apartment marketplace, and help you to narrow your focus.

Why Invest in Apartment Properties?

If you have a good bit of capital, valuable assets or collateral, and good credit, chances are you’d be eligible to secure apartment building loans.

Investing in an apartment complex is a huge undertaking, but the rewards far exceed the responsibility you’ll have to endure. But, you’ll become the “dreaded landlord” that everyone loves to hate, right? Not if you conduct yourself professionally.

Sure, you’ll have to tend to your units, ensure that they’re maintained, keep all appliances up to date, and fix everything from parking spaces to peepholes to ensure they’re all in tip-top shape. But, consider the revenue you’ll make from the size of your complex.

If you want to do some simple math, just take the price of rent for one single-family home. Just for discussion purposes, let’s say this is 1500 dollars a month for one home.

You can charge this same amount per unit if your complex is up to date and in a marketable area. Now multiply this amount by how many units you have. This could run anywhere from 4 to 400, depending on the size of your property.

That’s a lot of rent money, and depending on the type of loan you get, the revenue you’ll make off of each unit will be more than enough to pay your loans.

Types of Apartments & Complexes

Maybe you prefer the upscale side of life. It’s ok, most people do. If this is the case, then perhaps you’ll want to invest in condominiums or higher-end apartment buildings.

You might have your eye set on that high-rise building with 20 penthouse suites. Or, maybe you like the quaint communities in the suburbs, perfect for young people raising families. Regardless of what you prefer, a list of some of the more common complexes and units are as follows:

  • Multi-Unit Complexes
  • 3+ Bedroom Units
  • Lofts
  • Maisonettes
  • Parlor Floor
  • Duplex
  • Triplex
  • Penthouse

The classifications of modern and pre-WWII apartment styles and complex types are far too numerous to list. You’ll find that many of these types of apartment complexes with the most expensive attached rent prices are found in large cities such as San Francisco, New York City, Philadelphia, and many New England communities. Of course, you may also be interested in Real Estate | REP Calgary Homes.

But, it’s good to note that many versions of these apartments can be found throughout the country as well.

Moving on Up

Once you’ve decided what type of apartment complex you want to invest in, it’s time to crunch the numbers. Real estate investors are constantly crunching numbers and data in order to make the most sound and profitable investments, include apartment investments. For more information on real estate, check the website ravepropertymanagement.com.

While you might like the quaint feel of a small complex, this is a perfect starting point to build capital from. If you invest in a small 4 or 8 unit complex, within a few years, you could own several of these smaller complexes and be making the type of revenue only found in larger complexes.

With apartments, the higher up the ladder you go, the better off you’ll be financial. In this investment space, the sky is literally the limit. However, the return is also proportional to the risk.

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