Buying an apartment complex can be a great investment where you can make a potential income off of many tenants. When buying a series of apartments and looking at commercial real estate for sale, you want to look for a few key things. Here are things you should look for when looking for apartment complexes to buy.
There is a huge difference between buying apartments that already have tenants living in them and buying a complex that has yet to be filled. If an apartment complex has current tenants, you will want to ask your real estate agent how many tenants there are, what they are currently paying for rent (and what it includes), and how long their contract lasts for, if any. These are legalities you will be inheriting when you buy a property, and you will want to know what to anticipate when you take over ownership. If you are considering an apartment complex that already has people living in it, you will want to discuss the contracts with a real estate lawyer so you don't interfere with existing contracts and know how to smoothly move forward.
If you were to rent an apartment, where would you want it to be located? Near local grocery stores, schools, and other venues, most likely. This is something you should look into when you are buying apartment complexes as an investment. You want to choose a property with an attractive location so you can better attract tenants and be able to charge a more competitive monthly rent for the convenience of where the apartments stand.
A vacant apartment complex may be better within your price range, but it can also come with a lot of monetary issues. You will need to upgrade landscaping, do repairs on electricity and plumbing, and perform other tasks in order to make the individual apartments move-in ready. Keep this in mind as you seek out vacant buildings as an investment, as you may end up spending as much on a vacant property that needs work as you would with one that is already housing tenants.
Your real estate agent can show you many apartment complexes for sale in your area that are within your price range. Compare different apartments so you can get a decent idea about which ones will work best for your needs. Keep in mind that you will want to include closing fees and other costs as part of your budget so you don't get overwhelmed financially when making your final purchasing decision.Share