Real Estate Investment: Apartment Buildings vs. Apartment Complexes

If you want to become a real estate investor, you may want to consider becoming a landlord. The payout is a bit slower than buying and remodeling a single family home for profit. On the same note, rental units provide steady, ongoing income that can last for years.
Investing in real estate involves investment. We remind you that this is considered an investment, because if done correctly, you will recoup all the money spent and then make a profit.
When it comes to deciding whether you should buy condos for sale or condos for sale, keep these points in mind.
Purchase price and additional costs
Whether you’re buying an apartment building with three rental units or a condominium for sale with twenty units, always look beyond the purchase price. Consider the cost of necessary upgrades, repairs and ongoing maintenance. As a landlord, you have a duty (regardless of cost) to provide all tenants with good and safe accommodation.
As for the purchase price, apartment buildings are cheaper to buy. With a quick online search using a real estate search tool, I was able to find: 1 Syracuse, NY apartment building with 2 rental units for $79,000. 1 apartment complex in Syracuse, NY with 16 rental units for $440,000. The return on your investment will be about the same. At this point, it’s a matter of what you can afford.
Presumptive management
Let’s say you want to make real estate investing your career. You’re a jack of all trades and you’re going to handle all the billing, service, and so on on your own. After all, the less help you hire, the more profit you’ll make yourself.
In this case, the less the better. This is especially true if this is your first foray into real estate investment income as a landlord. It is much easier to maintain an apartment building with 3 rental units than large apartment complexes for sale with 20 plus units.
Do you have to prove success in your business? Excellent! Then it’s time to think about expansion. Should you be unsuccessful in your venture? You will lose less with an apartment building due to the lower purchase price and initial investment.

These are just a few of the many factors you should consider before investing in real estate as a landlord. Need more help? Consider contacting a few local, friendly hosts in your area. Most will be willing to answer a few random questions. Do they own and rent out a large apartment complex or apartment building? How did they start? Any words of wisdom they would like to share? A professional realtor who specializes in commercial rental properties can also provide knowledgeable information.

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