anyone own an apartment complex? - GoFuckYourself.com

robfantasy · 09-06-2004, 01:16 PM

please discuss pros and cons of this type of investment

Fake Nick · 09-06-2004, 01:16 PM

pros , many bathrooms

cons , you have to clean em all

Giorgio_Xo · 09-06-2004, 01:18 PM

Constant upkeep and occupancy levels are key. There is plenty of money to be made. IMHO it is the fastest way to become a millionaire.

TheWildcard · 09-06-2004, 01:18 PM

umm no

robfantasy · 09-06-2004, 01:43 PM

Quote:

Originally posted by TheWildcard
umm no

umm no what?

i think it is a great investment

Basic_man · 09-06-2004, 01:46 PM

An appartement isn't an investment !

robfantasy · 09-06-2004, 01:50 PM

Quote:

Originally posted by Basic_man
An appartement isn't an investment !

an apartment complex meaning the whole building

Doc911 · 09-06-2004, 02:08 PM

I have 30 units. airconditioning is the major financial drain. have your maintenance people change the filters in every unit every month. It will save you tons of money.

Tenents never change them

Steen2 · 09-06-2004, 02:11 PM

Quote:

Originally posted by robfantasy
please discuss pros and cons of this type of investment

Trump is just an egotistic model, I own all of "Trump" investments

adrenalinedef · 09-06-2004, 02:21 PM

Quote:

Originally posted by Doc911
I have 30 units. airconditioning is the major financial drain. have your maintenance people change the filters in every unit every month. It will save you tons of money.

Tenents never change them

why not just make the tenents pay the electricity bill for their apartment?

Steen2 · 09-06-2004, 02:24 PM

Quote:

Originally posted by Doc911
I have 30 units. airconditioning is the major financial drain. have your maintenance people change the filters in every unit every month. It will save you tons of money.

Tenents never change them

Interesante!

mookienow · 09-06-2004, 02:25 PM

Quote:

Originally posted by adrenalinedef
why not just make the tenents pay the electricity bill for their apartment?

Going out on a limb here....
I think he ment that replaceing the AC's after the tenats never replace the filters in them......
correct me if im wrong.

Doc911 · 09-06-2004, 02:34 PM

Quote:

Originally posted by adrenalinedef
why not just make the tenents pay the electricity bill for their apartment?

Its not about electric bills they can go fuck themselves.

Its about 10k in replaceing units, sheet rock, carpeting etc etc...

Pornopat · 09-06-2004, 03:13 PM

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adult webmasterboard...

acctman · 09-06-2004, 03:19 PM

just invest in one, silent partner. you don't want to go through managing a staff, acct books, taxes, paper work, etc...

johnbosh · 09-06-2004, 03:25 PM

no, why

hova · 09-06-2004, 03:25 PM

Im going to invest in 2 apartment complexes in Spain next month.......my brother does it all the time, and he makes nice money with it

aflex · 09-06-2004, 03:52 PM

bump, interesting topic

Donnie Gangsta · 09-06-2004, 04:00 PM

heard it was a big hassle.. better to buy single family homes and bank on the appreciation.. 10% down with a 10% increase in value in a year = 100% return assuming you can cover mortgage payments with the rent

sickkittens · 09-06-2004, 04:01 PM

Quote:

Originally posted by TheWildcard
umm no

I think he means owning the whoel complex and renting it out. Pros are making money in the long run. Cons are dealing with tenants.

Chris · 09-06-2004, 04:04 PM

Quote:

Originally posted by Donnie Gangsta
heard it was a big hassle.. better to buy single family homes and bank on the appreciation.. 10% down with a 10% increase in value in a year = 100% return assuming you can cover mortgage payments with the rent

VERY slow money that way.

If you have the time and can handle stress

a complex is the way to go

or buy say 4-5 duplex's

xenigo · 09-06-2004, 04:12 PM

Quote:

Originally posted by JupZChris
VERY slow money that way.

If you have the time and can handle stress

a complex is the way to go

or buy say 4-5 duplex's

Are you crazy? 100% / year is the highest yield return you could expect from any investment.

Quotealex · 09-06-2004, 04:24 PM

Quote:

Originally posted by adrenalinedef
why not just make the tenents pay the electricity bill for their apartment?

That would involve installing individual electrical units for each apartment. This is not exactly cheap for a large complex.

Plus, some tenants want to stay in a residential unit where the energy costs (heating, air conditioning and power) is included in the rent.

beemk · 09-06-2004, 04:29 PM

Quote:

Originally posted by JupZChris
VERY slow money that way.

If you have the time and can handle stress

a complex is the way to go

or buy say 4-5 duplex's

do you honestly think renting duplexes is much all that much different than single family homes?

beemk · 09-06-2004, 04:31 PM

Quote:

Originally posted by Donnie Gangsta
heard it was a big hassle.. better to buy single family homes and bank on the appreciation.. 10% down with a 10% increase in value in a year = 100% return assuming you can cover mortgage payments with the rent

and taxes and several other expenses. you're right though, its a great investment.

Quotealex · 09-06-2004, 04:32 PM

Personally I wouldn't invest in any multi-residential units in North America at this time. The prices are so high that you barely make enough to pay the mortgage with a full occupancy level.

bluff · 09-06-2004, 04:32 PM

Quote:

Originally posted by xenigo
Are you crazy? 100% / year is the highest yield return you could expect from any investment.

some of my investments yield way better

Steen2 · 09-06-2004, 04:35 PM

Quote:

Originally posted by bluff
some of my investments yield way better

^^

beemk · 09-06-2004, 04:36 PM

Quote:

Originally posted by Alex from Montreal
Personally I wouldn't invest in any multi-residential units in North America at this time. The prices are so high that you barely make enough to pay the mortgage with a full occupancy level.

depends on the area

NoHassleSteve · 09-06-2004, 04:46 PM

Pros

If the apartments are away from you... travelling to them might
be a business expense. e.g. you live in Chicago, but you
buy rental units in Miami and L.A. (and leave maintenance
and management to an on-site Super)

cons

Watch for local laws. Some places are very landlord-friendly
(Florida) and others are very tenant-friendly (the Northeast)
You don't want to get into a situation where evicting a bad
tenant takes months instead of days.

Plan9 · 09-06-2004, 04:53 PM

Quote:

Originally posted by JupZChris
VERY slow money that way.

If you have the time and can handle stress

a complex is the way to go

or buy say 4-5 duplex's

also one of the safest. Everyone is making it sound like its a simple process to buy an apartment complex, and make millions. If you don't know what you are doing you will lose your shirt.

detoxed · 09-06-2004, 04:56 PM

Quote:

Originally posted by xenigo
Are you crazy? 100% / year is the highest yield return you could expect from any investment.

Donnie Gangsta · 09-06-2004, 05:07 PM

Quote:

Originally posted by JupZChris
VERY slow money that way.

If you have the time and can handle stress

a complex is the way to go

or buy say 4-5 duplex's

single family homes are a lot less hassle and a lot easier to sell than big apartments.. I would much rather just cover my costs on the front end and make a huge amount on the back end while focusing on making money in other areas (i.e. adult).. guess it's just all about what you're looking for

aflex · 09-06-2004, 05:22 PM

i'd recommend if you buy a complex, when you are a little more experienced in being a landlord. like someone mentioned, you could lose your shirt.

for example (taken from a book):

You own a 12-unit building. You underprice each unit by $25 a month. The cap rate is 9%. How much does this underpricing error cost you?

Lost income = $25 x 12 units x 12 months
= $3,600 per year

Lost building value = $3,600 / .09 = $40,000

You've lost $40,000 of value just by underpricing $25 per month.

beemk · 09-06-2004, 05:39 PM

Quote:

Originally posted by NoHassleSteve
Pros

If the apartments are away from you... travelling to them might
be a business expense.

thats a con, if you get something like that its best to have it close. its a pain in the ass to travel across the country for stuff like that.

wargames · 09-06-2004, 05:43 PM

We own one
Pros good supply of cash flow every month.
Cons right now is a wrong time to buy property
give it a couple more years real estate prices
should be falling soon.

Quotealex · 09-09-2004, 10:20 AM

Quote:

Originally posted by aflex
i'd recommend if you buy a complex, when you are a little more experienced in being a landlord. like someone mentioned, you could lose your shirt.

for example (taken from a book):

You own a 12-unit building. You underprice each unit by $25 a month. The cap rate is 9%. How much does this underpricing error cost you?

Lost income = $25 x 12 units x 12 months
= $3,600 per year

Lost building value = $3,600 / .09 = $40,000

You've lost $40,000 of value just by underpricing $25 per month.

An appraiser would adjust below market rents to the market (i.e. would add the missing $25 per unit per month) and cap that net income at 9.0%. Then he would deduct an income shortfall to the loss of income for the term of the lease.

For example the property has 12 units with an average rent of $475 per month and an average expiry of 6 months. Say the market is at $500, then $500 would be used in determining the potential market value of the property. Then he would would deduct from that value $1,800 (12 units x $25 below market X 6 month before you renew the lease). thus instead of a loss of $40,000, the actual lost would only be $1,800.

Or the appraiser would increase the cap rate to say 8.75% to consider growth rent potential.

robfantasy · 09-10-2004, 12:58 AM

lots of great info here. id like to discuss further with ppl who have actually done this.

PiksalDesign · 09-10-2004, 01:06 AM

Quote:

Originally posted by robfantasy
lots of great info here. id like to discuss further with ppl who have actually done this.

I was planning on doing this in the future. I would love to discuss this more and learn what i can with people that know what they are talking about.

robfantasy · 09-10-2004, 02:22 PM

bump for the friday day shift

hyper · 09-10-2004, 02:50 PM

i own s few multi family properties, and am currently buying a 3 family now.

treat it as a business.. your tenants are your business customers.
screen them, be fair to them, know your housing laws.

upkeep. hire good maintenance people. repairs, supplies, motgage interest, are tax deductable.
except if u live on the property. then u cant deduct for yourself.

appreciation. well maintained properties almost always increase in value creating equity.

rents. rents should always be market rate. market rate usually covers your basic mortgage, insurance, taxes and water/sewer.

always.. always.. always collect a security deposit.
last months rent usually weeds out the scum (but not always)

i could go on and on

09-06-2004, 01:16 PM	#1
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	anyone own an apartment complex? please discuss pros and cons of this type of investment __________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

09-06-2004, 01:18 PM	#3
Giorgio_Xo Confirmed User Join Date: Mar 2003 Location: Las Vegas, NV Posts: 4,263	Constant upkeep and occupancy levels are key. There is plenty of money to be made. IMHO it is the fastest way to become a millionaire. __________________ Make Levees, Not War

09-06-2004, 01:46 PM	#6
Basic_man Programming King Pin Industry Role: Join Date: Oct 2003 Location: Montreal Posts: 27,360	An appartement isn't an investment ! __________________ UUGallery Builder - automated photo/video gallery plugin for Wordpress! Stop looking! Checkout Naked Hosting, online since 1999 !

09-06-2004, 02:08 PM	#8
Doc911 Confirmed User Join Date: Feb 2004 Location: If i was up your ass you'd know Posts: 3,695	I have 30 units. airconditioning is the major financial drain. have your maintenance people change the filters in every unit every month. It will save you tons of money. Tenents never change them __________________ For PHP/MySQL scripts ICQ 161480555 or email [email protected]

09-06-2004, 03:13 PM	#14
Pornopat AdultTubeSubmits.com Industry Role: Join Date: Dec 2003 Location: The Netherlands Posts: 10,598	hmmm adult webmasterboard... __________________ https://stripcash.com/sign-up/?userI...fff832eb95ab6a

09-06-2004, 01:16 PM	#2
Fake Nick So Fucking Banned Join Date: Jul 2004 Location: go troll goo! Posts: 7,708	pros , many bathrooms cons , you have to clean em all

09-06-2004, 01:18 PM	#4
TheWildcard So Fucking Banned Join Date: Jun 2004 Location: The Netherlands Posts: 4,759	umm no

09-06-2004, 03:19 PM	#15
acctman Confirmed User Join Date: Oct 2003 Location: Atlanta Posts: 2,840	just invest in one, silent partner. you don't want to go through managing a staff, acct books, taxes, paper work, etc...

09-06-2004, 03:25 PM	#16
johnbosh Confirmed User Join Date: Aug 2002 Location: The Netherlands, Rotterdam Posts: 8,965	no, why

09-06-2004, 03:25 PM	#17
hova Traffillionaire Industry Role: Join Date: Jan 2002 Location: ICQ:209371571 Posts: 22,430	Im going to invest in 2 apartment complexes in Spain next month.......my brother does it all the time, and he makes nice money with it __________________ http://traffillions.com/ Sign up and get lifetime revshare on your traffic

09-06-2004, 03:52 PM	#18
aflex Confirmed User Join Date: Oct 2002 Location: New Jersey - adaptweb at gmail.com Posts: 3,127	bump, interesting topic __________________ self made mothafucka. buying premium domains & developed sites with revenue/traffic -> adaptweb at gmail.com

09-06-2004, 04:00 PM	#19
Donnie Gangsta Confirmed User Join Date: Mar 2002 Location: Las Vegas Posts: 1,104	heard it was a big hassle.. better to buy single family homes and bank on the appreciation.. 10% down with a 10% increase in value in a year = 100% return assuming you can cover mortgage payments with the rent

09-06-2004, 04:32 PM	#26
Quotealex Confirmed User Join Date: Sep 2001 Location: The Global Digerati Village Posts: 6,265	Personally I wouldn't invest in any multi-residential units in North America at this time. The prices are so high that you barely make enough to pay the mortgage with a full occupancy level.

09-06-2004, 04:46 PM	#30
NoHassleSteve Confirmed User Join Date: Jul 2004 Location: South Florida Posts: 450	Pros If the apartments are away from you... travelling to them might be a business expense. e.g. you live in Chicago, but you buy rental units in Miami and L.A. (and leave maintenance and management to an on-site Super) cons Watch for local laws. Some places are very landlord-friendly (Florida) and others are very tenant-friendly (the Northeast) You don't want to get into a situation where evicting a bad tenant takes months instead of days.

09-06-2004, 05:22 PM	#34
aflex Confirmed User Join Date: Oct 2002 Location: New Jersey - adaptweb at gmail.com Posts: 3,127	i'd recommend if you buy a complex, when you are a little more experienced in being a landlord. like someone mentioned, you could lose your shirt. for example (taken from a book): You own a 12-unit building. You underprice each unit by $25 a month. The cap rate is 9%. How much does this underpricing error cost you? Lost income = $25 x 12 units x 12 months = $3,600 per year Lost building value = $3,600 / .09 = $40,000 You've lost $40,000 of value just by underpricing $25 per month. __________________ self made mothafucka. buying premium domains & developed sites with revenue/traffic -> adaptweb at gmail.com

09-06-2004, 05:43 PM	#36
wargames Kliris Join Date: May 2003 Location: ca Posts: 10,423	We own one Pros good supply of cash flow every month. Cons right now is a wrong time to buy property give it a couple more years real estate prices should be falling soon. __________________ ICQ 212-115-582 Email Steve at Vas Media Group .com

09-10-2004, 12:58 AM	#38
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	lots of great info here. id like to discuss further with ppl who have actually done this. __________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

09-10-2004, 02:22 PM	#40
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	bump for the friday day shift __________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

09-10-2004, 02:50 PM	#41
hyper Confirmed User Join Date: Mar 2002 Location: Mass Ass Posts: 5,294	i own s few multi family properties, and am currently buying a 3 family now. treat it as a business.. your tenants are your business customers. screen them, be fair to them, know your housing laws. upkeep. hire good maintenance people. repairs, supplies, motgage interest, are tax deductable. except if u live on the property. then u cant deduct for yourself. appreciation. well maintained properties almost always increase in value creating equity. rents. rents should always be market rate. market rate usually covers your basic mortgage, insurance, taxes and water/sewer. always.. always.. always collect a security deposit. last months rent usually weeds out the scum (but not always) i could go on and on __________________