How Much Money Does It Cost To Buy An Apartment Complex

It could be anywhere from 3 to 200 million.

How much money does it cost to buy an apartment complex. Then your net operating incomeshould equal approximately 500000 per year. How much money you can make from an apartment investment depends on the risk of the property. Annual Income before taxes Monthly Income before taxes Budget at 30.

By reaching the point where we are comfortable bringing in equity investors we are now actively looking for apartment complexes in both the Cincinnati and Atlanta markets up to a 10 million. Suppose your complex has 50 units and the average annual NOI per unit is 10000. Suppose that were utilizing a cap rate 10.

Max Approved at 2X. There are also however some additional complications. Just like all other types of real estate apartments are subject to property tax deductions.

These include property expenses as well as any losses in addition to other unexpected expenses associated with it. Any unexpected expenses or unplanned vacancies will decrease this number. The cost will vary based on the age of the building and the type of property such as A B or C apartment complex.

However while rare there are ways to buy an apartment building with no money down. For calculating labor cost and basic building components let us defer to the 2013 RSMeans data. Typically youll need at least 10 down to buy an apartment building.

We also placed a cap on the use of the tenants utility usage. Deciding on your risk tolerance will dictate your apartment investment strategy. Once we have a pretty strong idea of the local cap rate giving the banks assessment the highest degree of credibility we can calculate the value.