If you are looking for your next big real estate investment opportunity, you should seriously consider an apartment block. It’s not necessarily the best idea if you are a brand new investor because you have multiple units to manage, but if you already have a bit of experience with single-family rental properties, an apartment block is a good way to go. These are some of the big benefits of investing in an apartment block.
Reliable Income Streams
Tenant turnover is a big problem for landlords because you’re not earning any rent until you can find somebody else to move into that property. You have to cover the cost of advertising the property, creating virtual tours and taking photos, showing people around, and potentially doing work on the property if it needs it. These costs quickly add up and you’re not earning any revenue from the property until you can fill it again, which quickly eats into your profits. However, when you invest in an apartment building, those losses are not as damaging. You have lots of apartments and so if one person decides to move out, you still have revenue coming in from the rest of the apartments in the block, making it a much more reliable option. It’s very unlikely that more than one or two people at most will move out at the same time, so you always have a constant revenue stream.
More Opportunities For Amenities
When renters are looking for a place, they want to know about the local amenities. When you invest in an apt building, there is a lot more potential for amenities. Many of them have a swimming pool or an on-site gym. There is often parking on-site too, and the security is much better than it is with any other type of residential property. These extra amenities will make it much easier to attract tenants and when your property is more competitive, you can charge a higher rate for it. You shouldn’t underestimate the value of amenities because they can make your investment a lot more profitable.
It Gives You A Headstart On Your Portfolio
If you have long-term goals to create your own real estate portfolio with lots of properties, this is a great way to get started. It’s a long process if you build a portfolio of residential homes, one by one. Buying an apartment building, on the other hand, gives you 20 properties straight away.
There is a big benefit to having that kind of freedom and that many properties because you can sell them off if you want to. If you decide that you want a big cash injection to deal with debts or put into other investments, you can sell off one or two apartments and keep the rest. You’ll still have your regular income from the rest of the apartments but you can easily liquidate parts of your investment.
When you are considering your different real estate investment options, don’t forget about apartment buildings because they are a great option.