Bying Apartment Buildings

Buying apartment buildings is something that experienced investors often do to increase their investing portfolio and guarantee a monthly income over a long period.  Apartment buildings may be too expensive for the beginner, but their profit potential make them a wise choice for those who can afford them.

There are mainly two different types of apartment buildings: the garden apartment complex or the multi-level building.  The garden apartment complex can be found in any city or town and is characterized by small apartments grouped together.  These could be duplexes, townhouses, or another structure that is only a few stories high.  A high rise contains a number of  apartments in one building and may have an elevator.

Garden apartment complexes are widely available and can be found for an affordable price.  Since they cover a wider area of land and are typically multiple buildings, the maintenance costs for these can be high.  Also, more landscaping is usually required.  Many garden apartment communities have other amenities such as laundry appliances in each apartment and community play areas.

High rise apartment buildings generally aren't  found in smaller towns, so you'll need to be in (or go to) a city to buy one.  They tend to be higher in price than garden apartments, but this is offset by the fact that maintenance costs are usually lower. However, depending on the area that you live in, you might not have as many to choose from.

If you are interested in buying apartment buildings, start by looking at what is on the market for sale.  You may search online, use the classifieds, or deal with a realtor or broker specializing in apartments.  You might find an apartment building that meets your requirements with just this method of search.

It can be more difficult to buying apartment buildings that arentt yet for sale, but it will increase your options and lower your competition.  Ask owners if they are interested in selling.  Have a confidentiality agreement prepared before going to the owners and if they will consider selling, study the books closely.

When buying apartment buildings, you need to have all the facts.  Find out the type of renters for the units, the price of rent, the occupancy rate, and the income and operating expenses for the past few years.  You'll want to draw up a confidentiality agreement to give to the owner before you contact him. Buying apartment buildings takes diligence, but it can be a wise investment that will pay you for years.