If you’ve ever lived in an apartment, you know the advantages that you have. While some people don’t care for being in close proximity to others, for many people, apartments offer a quality of life that they can afford.
Apartments don’t require spending money on maintenance, and often these complexes have included part of the cost of utilities with the rent. This makes apartment living an attractive option for those just starting out on a limited budget, and for those elderly residents who don’t have the means to perform routine maintenance or upkeep.
All of this makes investing in apartment complexes a lucrative option, as the customer base for these complexes is always growing. If you’re considering a loan for apartment real estate, here are a few tips to help you along the way.
Know Your Location
If you want to get the biggest return for your money, you’ll need to invest in the right complex. And, when it comes to the right complex, it’s all about location, location, location.
Complexes in big cities and in upscale neighborhoods are the best areas to look in if you’re looking to charge higher rent prices. You’ll also be dealing with a wealthier demographic.
Some neighborhoods around the country have an average income of over 6 figures, and yes, there are apartment complexes for sale in these neighborhoods. Sure, the initial investment price will be much higher, but so will your investment returns.
You’ll also find that people who choose to live in these communities often have higher than average credit scores, and the means to pay bills without issues. This is great news, especially because it means you’ll have fewer evictions to process.
No area is going to be a real estate investor’s personal Utopia, as you’ll encounter problems in wealthy areas as well as in others. But, you can rest assured that if you invest in a premier location with a higher percentage of growth potential, the property value will most likely increase over time.
Survey the Property Closely
Once you’ve found a great location that you’re happy with, whether this is a suburban sprawl, an inner-city triplex, or a rural 4-plex, it’s time to survey the property that you intend to buy.
On the surface, a property might look great. But you really have to do some digging to uncover any issues that you might be dealing with once you sign on the dotted line.
Many older properties come with years of problems that have been either overlooked or unattended to. Even newer properties can have issues as well. This is why you need to survey your property yourself and take note of any issues you might notice, then hire an inspector.
A building inspector will be able to tell you if the property is worth your time and money, and at the very least be able to tell you what you’ll want to look out for, or avoid altogether. Truth be told, there are several things you should consider prior to buying any property, and some of these are as follows:
- Foundation Integrity
- Roofing Quality
- Overall Construction Quality
- Code Compliance
- Road Wear
- Ease of Access
- Interior Conditions (of each unit)
Overall, even the age and quality of your property’s swimming pool design can play a part in the value of your property. They say it’s the little things that matter the most, but it’s the big things that can break the bank and your wallet over time.
Once you’ve found the perfect location and the perfect property, it’s time to secure your funds and begin your career as an apartment complex owner.
Though owning an apartment complex is a huge undertaking and comes along with a great deal of responsibility, you’ll be satisfied with the rewards you’ll reap once all of the hard work is behind you.
The only thing you’ll have to decide after buying your property is if you’ll be taking an active role and managing the property yourself, or if you’ll outsource these responsibilities to a property management company.
Either way, you’ll be on your way to enjoying a lucrative career, and hopefully a fat bank account.