Apartment buildings are an investor’s dream

Million dollar dreams are just an illusion without the right vehicle to achieve them. If you’re a serious investor looking for a way to gain more wealth without the hassle and risk of building your financial empire house-to-house, then apartment building investments are just what you’re looking for. When it comes to cash flow, apartment complexes are by far the most lucrative deal available to private investors. This is why.

There is less competition. The high cost of a multi-family building compared to single-family homes is enough to turn many investors away from this type of investment. For that reason, this market has much less competition. Combine that thought with the fact that the number of apartment building foreclosures is on the rise, and you have a prime market just waiting to be tapped.

Apartment building foreclosures are quickly attracting the attention of commercial property investors looking for even bigger profits. Investors can get even better cash flow than buying an apartment building that is not in foreclosure simply because they will get the property for less than it was worth.

Higher cash-on-cash yields compared to single-family homes make apartment buildings the prime opportunity. Getting $300 cash flow on a single-family home is a good starting point for many investors, but with apartment buildings, investors can get cash flows multiplied due to the sheer number of units they’re dealing with. Even owning a small apartment complex with 10-12 units can literally put thousands of dollars in your pocket with just one property.

There is a greater demand for apartment rentals. Foreclosures occurring across the country have caused many families to downsize. They will most likely end up in apartments because it is cheaper to rent than a house. For the investor, that means he won’t end up sitting in an empty apartment building.

Investors can instantly benefit from positive cash flows. Investors in apartment construction benefit only by the number of units they are dealing with. In the case of a single-family home, any profit you receive can easily be absorbed by taxes, insurance, and ongoing maintenance. With apartments, those expenses can be spread more easily among the number of units you have.

Apartment buildings have a lower risk. If your single-family home becomes vacant, do you have the cash flow to support it, and if so, for how long? The advantage of having multiple units is that if one becomes vacant, you have other units that can take on the load. Earlier, I mentioned that there is an increased demand for apartments. This trend makes the risk even lower compared to the single-family market.

The multiplied profits allow investors to hire property managers who can handle rental and maintenance issues. The cash flow you’ll generate from multi-family housing allows you to leverage your time and gives you the opportunity to shop around for more deals or enjoy the time you have.

Multifamily homeowners are more willing and able to provide seller financing. While this does not apply to all apartment owners, there are still many more opportunities to obtain seller financing compared to single-family homes. Again, I want to mention that I don’t advocate loan offers 100%, but if the numbers work out and the offer is solid, then it might be something to consider.

Apartment buildings are an investor’s dream! The benefits of increased cash flow, increased demand, increased buying opportunities, the ability to leverage time, multiplied profits, and opportunities for seller financing make apartment investment something to consider. If you’re serious about achieving your financial dreams, no matter what level of investor you are, apartment buildings are the vehicle to use. After all, single-family homes work, but apartments work even faster.