I have several blogs that extol, the advantages of investing in apartment buildings. And now I will share with you that same information.
However I will be specific about the type of real estate you should invest in. I will also direct you to invest early, in apartment real-estate. Like yesterday.
Before you go head over heals in debt buying that dream home, especially with the flux,the overall real estate market is experiencing, you want to invest in a 6 unit apartment, building.
Why?:
Six units are more manageable for a couple starting out. You can live in one of the units rent free, use another to pay the utilities, and yet another to pay your car note.
This is based on renting units for as little as, 3 units for $750.00-a month, and 3 units for $850.00, the 3-units that rent for $850.00 a month can be used for savings, and disposable income. Or re-investment.
After one year of staying in your apartment building, you will be able to afford your dream home. And probably a larger home than you first dreamed of, with the foreclosures, we are seeing today.
How many advantages are there in investing in 6 unit, apartment buildings, let me count the ways. You have four kids to send to college. If you have twenty thousand dollars to spend on tuition, take that same twenty thousand and invest it in a 6 unit apartment building.
Let your college age off spring live in one of the units, once again rent free, and rent out the other seven, use the profit you receive form, three of the rentals, approx. $25,500.00 a year to re-invest each year until you have all four children in there on apartment building. With the profits paying there tuition.
You can maintain ownership if you desire, or Quit Claim these investments, over to the children, this way they are own their own whether they graduate or not, and you can have the nest to yourself for your, retirement years or sooner.
Something else to look at is the current rate of foreclosures, in the mortgage market, these people are going to need some where to stay, if you consider the influx of documented, immigrants they also need a place to stay.
Hot tip before you rent to anyone. After they place their application for rental, pay a surprise visit to their current place of residence this will give you some idea of how they will treat your property. Also, charge $25.00 per applicant, for credit checks.
Section eight rental is something to look at if you buy property in an other wise decent neighbor-hood. Section eight does pay for any repairs that are needed because of tenant abuse. But once again Due diligence in picking tenants can help you avoid negative experiences with renters.
If you think you have the where with all to handle an 8 unit go ahead but starting out I would limit myself to the 6 unit apartment building.
Now let’s talk about Tax write-offs, the first few years of real-estate ownership you pay nothing but interest, interest is deductible on your personal income taxes.
So You’re,living rent free, your making a killing on your income taxes with the tax write-offs. The advantages of apartment investing, have you counted the ways.
Lastly the key to all real-estate investment is location,location, location, find a good real-estate broker, one you can trust one who’s is knowledgeable, about the city you decide to invest in. Someone who you know to honest, your going to have a long and prosperous relationship with this person. And follow their lead when buying.
Still perform your own due diligence, check on the appreciation and depreciation cycle of the area you are looking to buy in. Nothing worse than having property value drop like a stone, two years after you are committed to a mortgage note, this size.
Well that’s the span-shot. I thought you would be on the phone by now calling a broker, remember you are not the only one reading this blog.
If you are going to invest for your child’s college future, and they are attending school, out of town, look for real-estate opportunities in the city where the college is. You can all ways sell the property after they graduate.
This has been a comprehensive offering form my point of view but let me suggest you read the other articles on this subject that you will find here on Helium, I’ve read some of all of them myself and they can help you in deciding to invest in apartment buildings.