Apartment buildings are those structures containing three or more living units with independent cooking and bathroom facilities, whether designated as apartment houses, condominiums, or garden apartments.
A typical apartment complex typically contains these features;
Apartment buildings typically feature parking spaces set aside for residents and visitors. Ideally, it has a number painted on it to make it simple for residents to locate. These parking facilities could either be opened, enclosed, above- or below-ground, and often directly beneath or adjacent to the residential and apartment building itself.
Curb appeal is important for any home, but it is particularly important for apartment buildings. The idea of well-maintained curbs signals to the potential tenant that they will be safe on your property and it is to lead to higher demands, for you as an investor in apartment buildings.
A Vertically accessible apartment is organized around a vertical core of stairs, lifts, or both. Apartments are accessed directly off the core or from an extended circulation area around the core that allows for additional apartments per floor.
WHY INVEST IN APARTMENT BUILDINGS?
Unlike a single-family home, apartment building investment requires a deeper level of involvement. Apartment investments are a top investment strategy for people who want a slow, but steady appreciation in their portfolio value, as well as rental income, and a useful source of cash flow.
Some other advantages to owning an apartment building include;
- Opportunities for additional sources of income like coin-operated laundry facilities and rentable common areas for parties and events.
- Recurring income
- Multifamily properties with a single vacancy aren’t as much of a risk as single-family homes with a vacancy
- Tax benefits
- Property appreciation
- Portfolio growth
As rich as the benefits of investing in an apartment building may be, you need to be definite on;
- What kind of apartment complex do you want to invest in?
- Suitability of location for your apartment building investment.
- Availability of resources for a good investment.
What kind of apartment complex do you want to invest in?
Once you’ve made the decision to invest in an apartment building, you’ll need to choose the style that best suits your financial goals and approach. Apartment buildings are classified on A, B, C, and D basis.
These buildings are very new — usually less than 15 years old — and require little to no maintenance or repairs, as everything is in tip-top shape. Most Class A apartments come with the best amenities, offer locations in nice neighborhoods, and tally less crime. These apartment buildings usually attract high-income earners who will pay more for the perks of a Class A apartment.
Next in line are Class B apartment buildings. One step below Class A apartments. Class B apartments are still relatively new — only 15 to 20 years old. They may need some updates, but generally, they’re in good condition. They attract middle to high-income earners.
These are apartments 20-plus years old. They need updates and maintenance for the building and the individual apartments.
These apartments are typically more than 30 years old and have below-average construction and conditions.
Before choosing the kind of apartment complex you want to invest in, you should consider a number of factors, including your personal and financial situation, the maintenance and management requirements, the number of units, and, of course, the return on investment.
2. Suitability of location for your apartment building investment
Researching your area and the numerous residential building construction-related factors of relevance is an essential first step on the road to success.
3. Availability of resources for a good investment
Investing in an apartment building is quite expensive and complex. Not only for the building but any upgrades or repairs require much funding. It’s critical to examine the availability of resources before investment.