Real-Estate-InvestingAs a real estate investor, it may appear that hundreds of buildings are just waiting to be purchased.

Each of these could potentially be a cash cow, but there are criteria they should meet.

For example, this might be an existing property but you can see if it’s making money.

Size of the Apartment Building

In terms of size, the apartment building should be at least 65 units. This will give you plenty of room to increase profits and bring in reliable tenants.

If the population is low at that point, you might have some tried and true marketing methods to attract visitors.

Those investors familiar with asset ratings understand the importance of a high score. If the building has a B rating or higher, this is a sign that you’ll earn some of your original investment back. If not, it may time a longer amount of time to make this a profitable venture.

Using Reliable Market Valuations

Make sure the market valuations you’re reading have come from experienced, established agencies. They can give you the data you’re looking for in efficient reports. However, if you work with a company that is inexperienced in this particular category, the report might not be as effective.

Maintaining a High Occupancy Rate

Keep in mind that in order to make residual money, you need to have at least a 75% occupancy rate. If you maintain this, then you’ll be able to rely on families and couples who have settled in. However, if you can get a great deal on a property that is increasing in value, a lower occupancy rate might be acceptable.

It’s worth consulting with other professionals if you need a second opinion. This might be a trusted colleague or a professional adviser for novice investors.

It is possible to make money as a real estate investor and anyone can do it. However, if you have professional tools that let you make smarter decisions, you can avoid some of the common beginner mistakes. The above tips will help you narrow down your apartment building choices and let you earn back your original investment quicker.

Tags: ,

This is filed under Real Estate Investors.

     Twitter It!