You’ve got some money in the bank drawing pathetically little interest and you’ve decided to invest it instead. Right now, the stock market is kind of rocky. New home sales are down and the real estate market, as a whole, seems dismal. There is an exception. During this financial crisis, more people are opting to rent apartments than take the next step towards home ownership. If you want to cash in on this growing market, here are some tips for finding apartment buildings to invest in.
The easiest investment opportunity in the rental property market can be ground level, when the building is in the pre-construction phase. This is when the builders need investors to help defray construction costs and those investors while they have to wait a while to see a return, should enjoy a nice reward when the finished building is at full capacity.
Another way is to buy into an older apartment facility that is being renovated. Here again, the group doing the renovations needs cash for the repairs and overhaul and they will cut you in for a share of what the units will bring in once they are upgraded and renting for more money. Occasionally, even well maintained, high-occupancy apartment complexes need an extra influx of cash. Keeping your ear to the ground might help you be the one they turn to, if you can time your approach right.
Of course, you could buy an apartment building outright. This would, however, entail your running it or hiring someone else to do so. As an investment, it can be quite costly multifamily for sale and you’ll be spending a lot more than money to make it turn a profit. I’d steer clear of ownership and be content to let my money work for me. And these are my top three tips for finding apartment buildings to invest in so your money can start earning money!