All Forum Posts by: Joe Carr
Joe Carr has started 2 posts and replied 5 times.
Post: Can you just buy a $1m apartment building?
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- Votes 4
Quote from @Nathan M kiefer:
we use $50k per thousand as a calculation so for us a unit that is $70k should rent for $1400 mo..
ok so whats the falacy then?
Post: Can you just buy a $1m apartment building?
- Posts 5
- Votes 4
Quote from @Nathan M kiefer:
Lot of hypothetical here.
to build a property like your talking would be 2.25mm.
To buy one for a million seems like a falacy to me unless it is severely vacant and has a lot of issues.
In my opinion the 15 unit $1mm thats financial viable, occupied and has bankable acceptable repair reserves is like finding a unicorn.
of course these deals happen all the time but they are not long term gainers but typically get done with a 1031 investor.
looking at listings for apartment building seems to avg $70k/unit. and the avg rent in the city is $1,101. one building i see is 14 units $30k/unit and looks find on the inside pictures. there could be units in really bad shape that their not showing. since theres only a few photos of the inside. but does $70k/unit align with $1,101 rent?
Post: Can you just buy a $1m apartment building?
- Posts 5
- Votes 4
Quote from @Bill B.:
If you found a million dollar 15 unit building that rents for $2,000/mo per unit ($360k/yr) and shows a profit of $180k/yr (it “makes” $1k per unit per month)) you should probably just buy it and relist it for $2M. That’s still a 9 cap and probably would be the cheapest building in any non-war zone neighborhood.
Most of the 4-plexes I see for sale are $600k+ and you’re lucky if they “make” $100/mo per unit, but most don’t.
You should definitely buy that building assuming it's not falling a part or in a war zone. Heck you could exchange the equity in 1 SFR for the downpayment on one or 2 of them. I'd buy 3 or 4 and call it a day. Job done. But if I could make a quick million flipping them I probably couldn't hold on very long.
But it will be a lot more work than SFR and if you ever want to sell it will be an all or nothing situation. You probably can't get 30 year fixed financing either.
well this is a hypothetical property. but it is very similar to the market im near, Lansing MI. and the avg rent cost is $1,101. how much is actually made from that after expenses? 50%?
Post: Can you just buy a $1m apartment building?
- Posts 5
- Votes 4
So hypothetically if you had the money for a down payment of 25% on a $1m apartment building. Which is $250k. Say it has 15 units, and makes $1k/unit. Could you just straight up invest in an apartment building? And skip having to look through tons of houses all the time sorting through hundreds of houses for 10 years and ending up with 15 individual houses that might make you $500/unit. I set up a google spreadsheet and a website that shows apartment buildings for sale. I’m just calculating the simples parts of it, total cost, down payment cost, #units, unit income, and amount of time to pay off down payment and pay off the whole building. I’ve looked at three buildings so far, they they usually take 17 months to payoff the downpayment, and 5~ years to pay the whole thing off. I’m just wondering if there’s any error in my thought to this.
Hi, I’m 15 years old and really interested in investing in real estate. I’m planning on taking the next three years to learn about real estate, and the rental economy around me. I was wondering how I can invest $600k into real estate? How should I spend it, should I buy multiple houses in one year or even one month? Obviously I don’t have $600k to my name, but my family has about $600k that we’re currently investing in stock with an agent. But I see that if you play your cards right you can earn a lot more with real estate than 6-10%.