Updated over 5 years ago on . Most recent reply
Who can help me find good deals in Minneapolis?
Would buying an apartment building be a good choice?
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Todd Dexheimer
#2 Multi-Family and Apartment Investing Contributor
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Todd Dexheimer#2 Multi-Family and Apartment Investing Contributor
#2 Multi-Family and Apartment Investing Contributor
- Rental Property Investor
- St. Paul, MN
That's a really vague question. Yes, buying an apartment building in the right location, in a market/sub-market with strong fundamentals can be good. You need the following:
1. Sound management and operations
2. Solid financing
3. Good positive cash flow over 1.25 DSCR
4. Ample cash reserves (6-9+ months of P&I)
5. Experience
6. Experienced team
7. A solid building with out deficiencies or properly budget for those deficiencies
8. Strong business plan