- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (6)
- agentblu15
- Contributions:353
honestly, if it's your first experience with owning an investment property, I'd strongly recommend starting with 1 or 2 units at the most. There's a lot of work/time/money/management that goes into running a successful investment rental, and it's easy to get in over your head and overwhelmed if you take on too much too quickly. Start with 1-2 units, get a feel for how to run your books, how to handle maintenance, how your cashflow will work with rent payments coming in and utilities and maintenance going out, how you'll handle things if one or more units sits vacant for a couple months, etc. Then, once you're successful with that for a while, you can upgrade to take on more units, or more properties.
Also, be advised that up to 4 units will still be considered residential real estate, but once you go above 4, it's classified as commercial real estate, which comes with its own set of challenges, both in buying it and in owning/running it.
Also, be advised that up to 4 units will still be considered residential real estate, but once you go above 4, it's classified as commercial real estate, which comes with its own set of challenges, both in buying it and in owning/running it.
- wantout12
- Contributions:4
buy all the units and make the money. why do the 4 when income for 12 is more.
- Zanna Vaida, "ZVaida"
- Contributions:66
You're forgeting about expences. Wny put all money in one basket when the basket isn't full of gold?
It's easy for some people to comment. It's not their money. I;m looking for an experinsed investor advice.
Here's the property click here
- Mack McCoy
- Contributions:1115
We don't know your situation, but generally speaking, the ROI and economy of scale are better on a 12 than a 4.
The price per unit should be lower on the 12, partially due to the difficulty in getting financing for the 12 (non-FHA eligible) rather than the 4 (FHA-eligible). Thus, there is greater demand for the 4s, pushing the price-per-unit up.
Then again, we don't know anything about the condition of the properties (nor do we care much), any potential for future development, any of that.
But if you can swing it, 12 is usually better than 4.
The price per unit should be lower on the 12, partially due to the difficulty in getting financing for the 12 (non-FHA eligible) rather than the 4 (FHA-eligible). Thus, there is greater demand for the 4s, pushing the price-per-unit up.
Then again, we don't know anything about the condition of the properties (nor do we care much), any potential for future development, any of that.
But if you can swing it, 12 is usually better than 4.
- NTETS, "Mr Caveat"
- Contributions:6436
you want the advice an investor might give?
go there, ask for an appointment to tour, and ask to look at the books. calculate 5 things.
1) total yearly income for each of last 3 years
2) total yearly expenses for each of the last 3 years
3) total rent per unit per year, x 12 units x .7 or .8, which is what you should expect to receive in an average mtm or 6 month tenant situation *note if you expect to live in one of the units...
4) calculate your cost to purchase, probably per year, include 21,000 in taxes, your 6% interest rate, water bill, all maint done, insurance...(this is different from 2)
5) compare 4 and 2 with 1 and 3 for each of the past 3 years.
a good deal is a good deal.
go there, ask for an appointment to tour, and ask to look at the books. calculate 5 things.
1) total yearly income for each of last 3 years
2) total yearly expenses for each of the last 3 years
3) total rent per unit per year, x 12 units x .7 or .8, which is what you should expect to receive in an average mtm or 6 month tenant situation *note if you expect to live in one of the units...
4) calculate your cost to purchase, probably per year, include 21,000 in taxes, your 6% interest rate, water bill, all maint done, insurance...(this is different from 2)
5) compare 4 and 2 with 1 and 3 for each of the past 3 years.
a good deal is a good deal.
- Zanna Vaida, "ZVaida"
- Contributions:66
Why doesn't any of you mention the importance of the property condition. For examp, a previous landlord purchsed "this" property 15 years ago and haven't done any updates since and want to get out of "that" business now. He charges the average rent because of this reason and knows that his competitors charge the higher fee based on location and the quality of life in a neighborhood.
I believe it's not about quantity, but also about quality. Any advice?
Does it worth to buy 12 units apartment complex? Should I buy 4 units or 12 units apartment first?
-
- 0.0/5.0
- (no reviews)
Contributions:66Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.