Buying apartment buildings can be one of the most lucrative investments that you can make in real estate, as long as it is done right. Apartments are basically just buildings with multiple houses on them. You have options for studio, penthouses, duplex, or an assortment of sizes based on number of rooms and the best part is that they can all be in one big building.
Before buying apartment buildings, it would do you good to also be aware of what you are getting into.
Make sure the structure is thoroughly checked and inspected by professional building inspectors, agents and even attorneys and make sure everything is right with the building. The defects with it should be easily correctable.
Make the calculations
There is a lot more work that goes into owning one large building with multiple houses than one large, single house. So make sure that your income flows will be big enough to cover all your mortgage payments, utilities, taxes and still leave you with some money as profit. Also, most lenders will hesitate to finance an apartment block unless it is already making profits.
Read and educate yourself
You will have to deal with a lot more in terms of complaints, repairs, maintenance, you will also have to provide your tenants a lot of utilities, more than what you will have to do in single houses. So speak to a realtor, others in the business and attend classes if you can. You should be aware of everything there is to know before you start buying apartment buildings.
Buying apartment buildings is not restricted to just those with a lot of money or experience and just like managing any other property, a lot is learned on the job, it can be highly profitable in the long run.