How to Buy an Apartment Complex
Income is a major factor in buying an apartment complex. To be a successful investment, the apartment complex must provide adequate income. Careful and thorough research is necessary to successfully buy an apartment complex.
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Financing
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If the apartment complex will not be purchased with cash, financing is required. Secure financing and determine the maximum purchase price and the available down payment.
Available Properties
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Read local newspaper advertisements and search online listings of commercial property to find apartment complexes for sale. Search for property in the local community so the investment can be closely monitored.
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Real Estate Broker
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Contact a knowledgeable and experienced real estate broker. The broker is a valuable source of information for available property and apartment complex operating statements.
Research
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Conduct an in-depth market analysis of the apartment complexes under consideration for purchase. Find the year built, number of units, the occupancy rate, the monthly rent and the apartment amenities. Use the apartment operating statements to carefully analyze the income and expenses for the complex. Determine the cost of the mortgage and calculate the net income.
Purchase
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Establish an accurate property value. Compare the price of similar apartment complexes. Contact the county property appraiser and find the tax-assessed value of the complex. Through the real estate broker or agent, make a competitive offer for the apartment complex. When the bid is accepted, follow all escrow instructions.
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References
Resources
- Photo Credit apartment building image by Christopher Dodge from Fotolia.com
