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How to Invest in Apartment Complexes - Frank Roessler

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Frank Roessler discusses how to invest in apartment complexes in this in-depth presentational blog. For more information, please visit FrankRoessler.com!

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How to Invest in Apartment Complexes - Frank Roessler

  1. 1. F R A N K R O E S S L E R . C O M Presented by Frank Roessler HOW TO INVEST IN APARTMENT COMPLEXES
  2. 2. Introduction If you’d like to get a start into real estate investing and don’t want to purchase single family residences, apartment complexes might be a good option for you. Hopefully, your tenants will make your mortgage payment and pay the bills for you, leaving you to collect the profits. When compared to other types of investment properties, they’re usually easier to manage and keep full. This is because you don’t have to deal with businesses, configuring spaces for them and paying leasing commissions. FRANKROESSLER.COM
  3. 3. FRANKROESSLER.COM Think Like an Investor This is one of the main keys to investing in apartment complexes is to look at them differently than you would a house. A house involves adding value by improving the property. There are two ways to drive value since investors buy apartments to make money. You can either make it less expensive to run or increase the income it generates. For example, you renovate a kitchen in a house because new kitchens cause buyers to pay more for houses. In an apartment, you’d decide whether the amount of extra rent you could get for a renovated kitchen, if any, would justify the expense.
  4. 4. FRANKROESSLER.COM Small Complex A two- to four-unit apartment building is usually seen as the same as a single-family home, from a lender’s point of view. Especially if you live there. So because of that, one way to get started in apartment investing is to buy a multi-unit building where you occupy one unit.
  5. 5. Large Complex The financing environment changes when you move into the realm of complexes with five or more units. You usually will need at least 20 percent down and frequently more than that. The lender may also observe your qualifications as a property manager before approving a loan. This may make it a bit more difficult for you to buy a larger building unless you have relatively deep pockets and experience with smaller units, or a manager you can work with. With that in mind, having an experienced partner by your side with access to financing is a good way to invest in a larger complex.
  6. 6. Thank You! For more information please visit FRANKROESSLER.COM

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