Investment Property Guide
Apartment Complex Valuation
Apartment Complex Valuation
In order to evaluate a possible apartment complex investment, you must first divide the asking price by the number of units to determine the price per unit. Next, find out how much tenant is currently charged and what types of leases they have. Use the numbers to determine your rate of return, less expenses, if you change nothing about the complex. Chances are, however, you can recoup your money quickly and begin seeing a huge turnaround through cleaning up the property, raising rents and amending leases.
By purchasing in a high demand market and making some affordable cosmetic changes and upgrades to the property, you may even be able to pass all of your expenses to the tenants via new leases.
Get creative and I identify areas where you can either increase or create value where it did not exist before. Be prepared to do some work to turn the place around, but it will certainly pay off in the end.
