Investing in apartment real-estate? | Real Property Management

? ?

Question by golfer003: Investing in apartment real-estate?
Hello All,

I currently work as a recruiter in Mass and have been doing so for 3 years now. Everything stays the same and I just need to do something different, something that I have control of. I have been told I have a very entrepreneur personality and should take a risk and do something different.

Hence this situation and question.

With the decrease in mortgage rates and the increase of the need of cheaper rent these days I feel finding and managing apartment buildings is the way to go. There is particular building that I am looking at that is on the market for 0,000.00 and all three floors are occupied paying nothing less then 1200 for rent. I have seen the place and although the structure looks like its in good shape they could certainly repaint the inside and do a few other things to make it look more valuable. I just bought a house about 4 months ago and with my current job I really wouldn?t have any extra money regarding debt/income ratio. The plan would be to keep my job until I didn?t have to.

My general thought from speaking to others is that for
1. Investing in apartment real-estate is a good idea.
2. Tenants will be paying off a mortgage in my name and once I have about 6 going that would make way for an easy retirement and great net worth.
3. Tax benefits, will be virtually running this business out of my house, hence being flexible to write off many things, not including the upgrades for the buildings and tax?s paid on the property.
4. The extra income coming in from rent that exceeds what the mortage payments are.

SO my question is does this make sense and seem realistic? Has anyone have particular experience with this that could give me a few pointers in this process???

I am currently in the process of educating myself with informational books regarding certain steps but would certainly appreciatte any input anyone had??

Thank you!!

Best answer:

Answer by SmartA$$
You have to be able to afford the mortgage payments without consideration for the rental income. The bank requires this because they expect the mortgage paid even during the months between tenants when no rent comes in.

Plus, the maintenance costs will kill you if you don?t have the cash flow.

I really think this idea is out of reach for you right now unless you can afford to pay the mortgage on your house and the mortgage on the apartment complex on your own without any rental income. The best option for you is probably to sell your house, then try to buy a property like this. Live in one of the units and just rent out the other units.

Give your answer to this question below!

Source: http://realpropertymanagement.tk/investing-in-apartment-real-estate/

san diego chargers ravens new york giants baltimore ravens chicago bears bengals pittsburgh steelers