Diversify Your Portfolio with Apartment Buildings

Real estate is mostly considered a solid investment. Regardless of current market conditions, at least it is a way to diversify your portfolio. The question is not whether you will be able to generate income from real estate, but how to materialize your investment quickly. Purchasing apartment buildings is one of many ways you can make money from real estate.

As long as units have tenants, apartment buildings are unique real estate investments that provide residual continuous income. In purchasing an apartment building, you don’t have to worry about whether you will be able to flip it immediately because that usually isn’t the goal, you need to find renters who are willing to sign a lease in exchange for a place to live in.  This is why apartment buildings are often successful when other real estate investments fail.

Aiming to find good yields for their money, real estate investors put their investments in apartment buildings. That’s why it became quite popular these recent years. With mortgage underwriting guidelines tightening up considerably for residential properties (1 to 4 units), more real estate investors have decided to acquire apartment buildings.

Interest rates have fallen dramatically recently, many commercial mortgage rates have also dropped to incredibly low rates, especially in apartments, where it ranges somewhere between 3 to 5%+. The lower the rates and the mortgage payments, the higher the monthly cash flow.

Increased Tenant Demands and Lower Vacancy Rates:

Ironically, the millions of homes foreclosed in recent years and the tightening up of government-backed or insured residential mortgage loans have forced previous homeowners into apartment units. As a result, apartment vacancy rates have fallen significantly in many regions.

The combination of lower vacancy rates and increased tenant demand has led to higher monthly rental income for apartment owners. The better the apartment owner’s Net Operating Income (NOI) figures, the higher the property valuation at a later date.

Like all real estate decisions, the decision to purchase an apartment building brings with it the potential for great gain as well as the possibility of financial loss. Whether or not there is a real estate boom or the market is facing a down turn, there are certain basics to take into account in order to make a financially sound decision.

We at Home Expo Gallery can help you. We have done this before and can guide you through the process to making the best decisions for your goals. We know the experts to help you with property management, taxes, legal structures for limited liability, and vetting the financials to get the right loan.  Call us for consultation and more info. Or email us and we’ll call you. Our Experts can help you!

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