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Author Topic: Apartment complex  (Read 1821 times)

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Offline duckwingduck

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Apartment complex
« on: January 16, 2017, 02:13:00 PM »
I have saved enough for down payment toward buying 8-16 unit apartment complex.

I have zero experience managing properties.  I can't even fix my own sink.

But I feel like I should get into investing in apartments and I hire management company to run it.

Anyone here wants to share their experience?  How much work is it?  How risky is it?

The risk is that I do not understand enough about properties, location, and their values to make good judgment. 

I don't want negative cash flow.  And I don't want a  lot of work.



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Offline nooneever

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Re: Apartment complex
« Reply #1 on: January 16, 2017, 02:27:49 PM »
You can hire people to do that, your profit margin may just be smaller.



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Offline thePoster

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Re: Apartment complex
« Reply #2 on: January 19, 2017, 03:03:03 PM »
Well, you can't kick people out if they got kids... like small kids... I'm not sure how old they have to be...

But if they are late on payments or can't pay you... you can't kick them out... so basically they get to live there rent free.

So you probably want to do background checks and credit checks and like... rent only to single folks and couples with no kids.



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I went through all 15k posts and those 2 quotes I found were the only ones so I guess that would make it "everytime".  Feel free to go through all 15k posts and verify by quoting them all.  You need to quote them all to verifying prove "everytime".   Please verify that Im wrong.

Offline YAX

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Re: Apartment complex
« Reply #3 on: January 24, 2017, 02:57:38 PM »
Waste of your money.  It's not easy to own an apt complex.  The guy you hire will likely squeeze your profits, the tenants will not pay rent, the complex falls into disrepair and people call you a slumlord.  In some places, like some midwest areas, you can't even kick out tenants during winter months if they refuse to pay rent.

Do you really need all that hassle and risk?



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Offline duckwingduck

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Re: Apartment complex
« Reply #4 on: January 24, 2017, 03:24:13 PM »
Waste of your money.  It's not easy to own an apt complex.  The guy you hire will likely squeeze your profits, the tenants will not pay rent, the complex falls into disrepair and people call you a slumlord.  In some places, like some midwest areas, you can't even kick out tenants during winter months if they refuse to pay rent.

Do you really need all that hassle and risk?

Is this from experience?



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Offline lexicon

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Re: Apartment complex
« Reply #5 on: January 24, 2017, 03:31:56 PM »
Sold investment properties in the past. Avoided apt complexes at all cost unless you have the means and experience to manage them. Consider small business complexes as an alternative.


« Last Edit: January 24, 2017, 03:34:58 PM by lexicon »

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Offline Hmong Martial Artist

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Re: Apartment complex
« Reply #6 on: April 02, 2017, 05:21:10 PM »
I will admit I have no experience in owning an apartment complex, however I have worked for a property management company and I know plenty of people who do own rental properties (particularly multi-family complexes).  Like you, I plan to buy a 4-plex in the near future and have spoken to those with experience on the same problems you brought up.

Here's what I've learned:

Obvious, location plays a huge part in whom you rent to.  Bad side of town, likely bad tenants.  You can higher a property mgmt. business, but keep in mind, they prefer to manage larger quantity and they may not have your best interests if you don't own at least 12 units.  However, that's just something to keep in mind, it isn't a rule - there are plenty of PM out there that are willing to manage smaller properties and do a good job at it.  But be active with your property and make sure you know just as much of what's going on with the properties as the PM does.

In terms of repair, as a home owner who has done personal repair to his own property, trust me - the internet is your friend, especially YouTube if you're a visual learner like I am.  Something that may seem overwhelming at first is simple once you've done it a few times and you start to wonder why you were so worry about it!  Changing a sinks, bathtubs, toilets and putting down tiles and fixing a wall is far easier than people think it is.  Rule of thumb, if it doesn't cost more than a few grand and weekend to do it, unless time is something you just don't have, you can do it yourself. 

One site I frequent and get taught a lot on Real Estate investment is Bigger Pockets.  They have an entire system set up - for free - that helps new investors and the forums friendly and more than happy to answer an questions you have on getting started.  You might even find so mentors in your city who're willing to meet up and teach you a few things.

Every financially secured individuals I personally know, who doesn't have a fancy college degree, got there through real estate - particularly multi-family investments.  I wish you the best of luck and I hope you share your experiences (good and bad) here so those of us who are aspiring Real Estate Moguls can learn from your experience!



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Offline darkhelmet

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Re: Apartment complex
« Reply #7 on: May 09, 2017, 09:59:01 PM »
I've had 4-plex in the past.  It's a pain in the ass.  Something is always broken and tenants don't pay.
You'll end up allowing tenant to live free for months because it's the law.  You can't kick them out for non-payment.  You must serve them notice and allow plenty of time for them to move out.

You'll end up going to court and winning but unable to get money from them.  Winning is pretty much worthless because the court doesn't enforce payment, you do.

No thanks.



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I made you read this.

Offline w1s3m0n

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Re: Apartment complex
« Reply #8 on: May 10, 2017, 12:33:56 AM »
If you don't enjoy fixing houses and cleaning the yard, owning a large complex will cost you your investment.  Now, if you have a business partner who enjoys fixing houses and etc..., go for it. 



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