Posts tagged as:

apartment building

Commercial Real Estate

If Your Building is 100% Occupied, Your Rents Are Too Low!!!

by Kyle Koller | September 28, 2009

Income properties are, to many, the ideal investment. Not only does one receive rental income on a monthly basis, but he also gets to enjoy capital appreciation—or at the very least, a solid hedge against inflation. With favorable tax treatment throughout and available 1031 tax deferred exchanges, one would be silly to not at least consider real estate investment.

And so he does. Hypothetical investor Bob purchases his first income property: an 8-unit multi-family in sunny San Diego, California. He loves the fact that it’s in a great location, has a favorable unit mix, and there has only been one vacancy in the last two years—and that vacancy didn’t last very long. As far as Bob is concerned, he has made the perfect investment. How could he do any better?

Raise the rents!

Typically, investment properties in low-vacancy, heavily renter-occupied housing areas that incur vacancies about as often as the Chicago Cubs win World Series have one problem: their rents are too low. If the rents weren’t below market, they would incur significantly more turnover.

That’s the key word: turnover

Turnover is a good thing; vacancies, themselves, are not. What’s the difference? A vacancy occurs when a unit has been turned (i.e. “rent ready”) and it does not have a tenant, or a prospective tenant. Turnover occurs when someone moves out of a unit and another moves in.

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Commercial Real Estate

Keep Your Apartment Building Vacancies Low

by Ted Karsch | November 18, 2008

One of the best methods to keep your apartment building investment profitable and to increase its long term value is to be constantly vigilant about keeping your tenants satisfied. Satisfied tenants tend to stay at the apartment building longer and thus they reduce turnover and your costs. Many individual owners of apartment buildings make the [...]

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Commercial Real Estate

Where to Find an Apartment Building to Buy

by Ted Karsch | November 11, 2008

Realtor Listed Apartment Buildings

A listed apartment building is simply any multifamily property whose owner has decided to sign a listing agreement with a licensed real estate agent. Most listings for apartment buildings will be held by a commercial realtor who has experience multifamily with properties. This can work to the buyer’s advantage because the listing [...]

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Commentary

Investing in Main Street Versus Investing in Wall Street

by Ted Karsch | October 21, 2008

With the Dow Jones Industrial Average having seen a steep decline along with most other major US and international stock indices, many American investors now are in despair about where they should position their investment capital. Meanwhile, the savings rate for American consumers has never been lower. As the credit markets continue to tighten and [...]

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Commercial Real Estate

Buy an Apartment Building Today?

by Ted Karsch | July 22, 2008

Buy an Apartment Building Today?
In today’s turbulent financial markets many investors are looking for ways to grow their money that will offer a steady flow of predictable income and limited market risk. More and more people are buying apartment buildings to help diffuse the effects of inflation on their portfolios. Apartment buildings offer many exceptional [...]

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Commercial Real Estate

Buy an Apartment Building with No Guru Included

by Ted Karsch | May 5, 2008

There are many thousands of savvy investors across the United States who would love to begin investing in apartment buildings but they just don’t have a plan for success. In other words, they don’t have a clear understanding of the necessary skills, knowledge, and mechanics of commercial real estate investing. Unfortunately, there are very [...]

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Commercial Real Estate

Apartment Buildings Verse Single Family Homes — An Investment Property Comparison

by Ted Karsch | April 22, 2008

A lot of the investors that I work with have some experience investing in single family homes but they want to know more about some of the advantages and disadvantages of investing in apartment buildings. The following lists are not meant to be exhaustive lists detailing every single advantage and disadvantage of investing apartment [...]

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Commercial Real Estate

Apartment Building Investment and the Time Value of Money

by Ted Karsch | April 17, 2008

The apartment building investor should always be aware of the amount of money that he or she has invested in an apartment building and more importantly the “time value” of that money. This concept of money’s value over a period of time becomes extremely important when comparing and contrasting different apartment building finance strategies. [...]

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