Investing In Apartment Buildings

Investments in commercial real estate such as apartment buildings can be very profitable depending on the location. Having several different people paying you hundreds or even thousands of dollars monthly can secure your financial freedom. Run down properties with huge repair expenses should be avoided though. Locations in safe good areas will always draw willing renters on the other hand. Especially apartment locations near to public transportation, parks, schools and hospitals. There are risk involved in apartment ownership and rental but the pay off can make it worth your while.

When trying to find a good apartment building as an investment, view the property inside out first, then get a real estate inspector to take a look also. It is a good idea to visit the area during the night time to gain an overall picture of the nationhood. Certain areas can change drastically when the sun goes downs and no one wants to own a apartment building where crime is an issue. Sit down and figure in the total cost of repairs and determine if the apartment is worth the asking price. Believe it or not, the previous owner may be willing to conduct all of the necessary repairs for you to ensure a quick sale. Other options include a live in tenant who agrees to make all of the necessary repairs in exchange for free or a reduced monthly rent rate. You may choose to live in the building yourself so you aren’t paying rent somewhere. This will also place you in the building so you can keep an eye on it while helping your tenants.

Gaining a better understanding of state and federal laws is very important to know. If you don’t have knowledge of them, you may be inadvertently breaking laws, thus opening up yourself for possible litigation. Something which may seem innocent to you but may appear as discrimination to others. Make sure you are very careful when selecting tenants and avoid turning down tenants based or race, sex or religion. The worst thing that could happen is you losing your apartment building because you chose the wrong words to use while disqualifying interested renters.

Overall though apartment buildings are great investments that pretty much run themselves. No ordering, re-stocking and little employee overhead all make it a good investment. Browse though your local Sunday paper to see what commercial real estate apartment buildings are up for sale in your area.