Thus, you have decided that you want to make a profit from the real estate market. But wait! You do not want to make money, throwing houses for profit. Instead, you think about long-term, steady profits. Think about becoming a landowner. One of the many solutions that you have encountered is whether to invest in multi-unit property or a large residential complex. As for the purchase of apartment buildings, here are the pros and cons:
The benefits of buying apartment buildings for rent
Affordable prices: As you know, real estate prices vary greatly from city to city and from state to state. In Syracuse, New York, you can purchase two family houses for $ 109,000. In San Francisco, California, you can purchase a much smaller, but comparable in appearance, two houses worth $ 849,900. The ratio is the same for several family houses as well as for large apartment complexes. The main difference? Multi-family homes require less upfront investment than large, established complexes.
Regardless of whether you are looking for an affordable test run or whether you want to invest in real estate, but on a limited budget, your multi-tenant home with two or three rental units is your best option in terms of cost.
Easier to maintain: On average, apartment buildings for sale, as a rule, take from two to four rental units. If this is your first blow to investing in real estate, an apartment building is better than a large residential complex. Think this is your test run. You have, say, three rental points for maintenance.
Starting small, you find that you can do most of the work yourself. This includes minor repairs to property, interviews with potential tenants, collection of monthly rent, etc. Without hiring outside help, you can get more profit faster. Most importantly, it allows you to quickly recoup your investment.
Disadvantages of buying apartment buildings for rent
Property condition: When this is done properly, owning and renting an apartment building or housing will be a profitable venture. If the owner / owner of the property sells the company, why? Are they moving? Good. Is the property in such a workaround form that they can no longer afford maintenance and repair? This can create a problem for you.
Careful passage of the game and checking from top to bottom by a professional can protect all investments. Always save the cost of necessary repairs, as well as ongoing repairs and maintenance. When it comes to buying apartment buildings for rental, never consider just the purchase price, or you will most likely end up over your head.
Utilities: Once again, a thorough inspection of any apartment building that you are interested in buying can eliminate this general conflict or disadvantage when buying several family houses. A common consideration is the fact that utilities are very different from property properties.
Personally, in my city about 50% of rental units listed online state "utilities included in the rent." This is due to the fact that utilities are usually distributed in all residential premises. It is impossible to say, without expensive plumbing and electrical work, who uses what is due to the mixture. This can create a rental problem. What if your rent is too low and you get energy? You may incur financial losses.
So, you have it! Now you know a few pros and cons that should be considered when deciding on the method of making a profit as an investor / landlord. Before making a final decision, be sure to consider all these pros and cons.
