When you spend $4,000 to renovate a unit, are you looking at how much more per month you get, say $50, and deciding it will take you over 6 years to get back that investment? Or – are you looking at market cap rates, where $50 a month, $600/year, in a 6% cap rate market, produces $10,000 of additional value?
The debate over in-town real estate vs. out-of-town is full of strong preferences as well as great unknowns. Investors seek multi-family properties, wanting to generate steady income and steadier equity. However, choosing the right location for these properties proves all too difficult, with small local markets contrasting sharply with distant options.
As a landlord for an apartment building, most of your concerns will lie with finding plenty of tenants who pay rent on time and care for their units responsibly. However, there is another component to your role that, unfortunately, many landlords fail to realize: keeping the apartment building looking great.
Looking to buy property? Investing in real estate can be an exciting moment and a smart investment, but getting the ball rolling can feel overwhelming. There’s a lot to learn about property investment. For example, how do you know you’re making smart choices?