If you are looking to supplement your retirement income, you might prefer the income from a small complex.However, if you wish to earn a larger income despite the risks, you’ll consider a complex containing larger apartment buildings.Also, there are complexes that are mixes of multifamily units and mixed use development.
These properties have numerous amenities, including tennis courts, swimming pools and clubhouses.
On the other hand, Class “B” properties are up to 20 years old, well-constructed, and with some Class “A” amenities.
Class “C” and Class “D” properties consist of old apartment buildings that need renovation and repair.
They are short on amenities and sometimes qualify as subsidized housing.
In this article, we’ll discuss the process of buying and owning an apartment complex, review its profitability, and evaluate owning an old apartment building vs a modern apartment building.
Buying an apartment complex is more involved than purchasing single-family properties.You must assess several factors when evaluating an apartment complex for sale.This starts with the location, which should be desirable or on its way to becoming desirable.On the other hand, using a commercial real estate agent grants you access to the multiple listing services they use.Naturally, this can speed up the search considerably.However, there are certain economies of scale that work to the benefit of apartment complex owners.Owning an apartment complex pros and cons are somewhat different from those for other multifamily structures.You may find your best bargains among Class “B” and Class “C” properties.If you want to conduct the search yourself in order to purchase and own an apartment complex, you’ll need to devote substantial time to the process.You must have a deeper knowledge of the managerial and financial aspects of owning an apartment complex.Let’s lay out the steps involved: A lot depends on whether you plan to actively manage the property yourself.