There are over 1.6 million apartment complexes in the US housing 39 million Americans.
As a property investor, buying an apartment complex is a massive opportunity to add value to your portfolio. It's the perfect long-term investment that will continue giving back for decades to come, but only if you buy the right one.
An apartment building isn't a cheap investment, but if you take real estate investment seriously, it's well worth it. Today, we're going to tell you how to buy an apartment complex that has plenty of promise.
As long as you do your research, there's no reason your investment strategy can't include a lucrative apartment building. Keep reading and learn how to make this dream a reality.
Set Your Goals and Determine Budget
Presumably, you have a general idea of how much you want to spend on your apartment complex. The price range of apartment buildings is massive and depends on the market, location, the size of the building, and the state it's in. You can expect to pay anywhere between a few million to a few hundred million.
Start the process by thinking about your goals for this investment. There are 4 classes of apartment buildings. The highest class includes newer buildings that have modern amenities, whereas the lowest class contains older buildings that need large-scale renovations.
If you're looking for a building with promise, you may want to choose something that needs some work. These come cheaper and offer a lot of upside for long-term investing.
Choose a Promising Location
Choosing where to buy an apartment building is a big part of the process. You have to analyze the demographics of the area and attempt to forecast your finances to figure out how and when you'll start making money.
Las Vegas is an extremely promising real estate market. It's always been a popular tourist destination, but the city is growing at an unprecedented rate right now. More people coming in means more opportunities to fill your apartment complex with suitable tenants.
Get Financing
When making a huge purchase like this, it's always important to get pre-approved for financing. Having your financial ducks in a row early on in the process makes it easy to jump on a property when the right one becomes available.
Whether you obtain traditional financing from a bank or find it through other means, being able to close the deal quickly is always going to benefit you.
Hire a Property Manager for Your Apartment Complex
Once you've secured the perfect property, the next thing you need to do is figure out how to start making money. There may be a lengthy renovation period, but as soon as you're ready to find tenants, hiring a property manager is a must.
Owning an apartment complex is hard work. A property manager will do everything for you, including tenant screening, property maintenance, and rent collection.
PURE Property Management is the premier property management team in Las Vegas. To learn about our services and get a free property analysis on your new apartment building, contact us today.