Apartments are an important part of our lives. At some point in each of our lives, we have all lived in an apartment. Apartments are where those who are too young to buy a home, who do not have the credit to buy a home, or who simply do not want to be in debt with a home, live. It is also where you can make a lot of money renting out to those people.
The Benefit of Apartment Investing
There are several benefits to investing in apartments:
- While housing demand changes, the demand in apartments stays relatively the same. Studies have found that apartment demand remains stable through the years, only changing slightly based on the economy. The most common people who rent apartments are young graduating singles, newly married couples, or people who are not ready for a mortgage.
- When demand for homes is down, demand for apartments goes up. That means you can make good money in tough economic times.
- You buy one apartment building with 20 apartments in it. Each apartment has a rent of $500. That means you make $10,000 every single month on your investment.
- Getting apartment financing is very easy to get. There are many lenders out there who will agree to finance your apartment investing because it is a stable investment that will keep you making money for a long period of time. If you have a history of apartment investing, some lenders will actually ask you to invest with them.
How Do You Invest In Apartments?
Owning an apartment building can give you a great investment opportunity that makes you money for years to come. With good on-site staff, and a well-run apartment building, you can pull in tens of thousands of dollars a month without having to do much.
- First, look online and in the newspaper to see if there are any apartment buildings for sale. If there are, go and see the owner of the building to see how motivated they are to sell. As well, ask what the occupancy rate is, what the rent is and what the size of each apartment is.
- Look at other apartments in the area to see what their vacancy rate is, and how much those apartment buildings sold for.
- Look at your potential apartment building to see what kinds of improvements need to be made. You want to make sure that your investment will not be offset by the extensive repairs that the apartment building may need.
- Contact an appraiser and have them come and determine how much the apartment is actually worth. Then you can decide how much you want to pay for the apartment building and you can compare that with what you are going to offer for your final price.
- Get your lender to approve the loan and then submit the offer to the owner of the apartment building. When they accept, you can now begin work on making the apartment building better by improving on it, looking at rents and finding ways for you to increase your profits.