How Much Does It Cost To Buy An Apartment Complex In California

Heres the interesting point.

How much does it cost to buy an apartment complex in california. Lets say for instance that you pay 1000 to rent but buying an apartment will cost 200000. If you manage the building yourself you can reduce that expense. So buying this exquisitely renovated five-bedroom unit in the mid-9 million range its priced at 9995000 has an equivalent value to buying a similarly sized apartment with the more typical 13750 monthly cost for a little over 11 million.

Co-ops also have monthly fees Common Charges and Maintenance Fees which may also include real estate taxes and a portion of the buildings underlying mortgage. By reaching the point where we are comfortable bringing in equity investors we are now actively looking for apartment complexes in both the Cincinnati and Atlanta markets up to a 10 million dollar purchase price. Per Unit Cost 64500-86000.

Unexpected apartment building operating and renovation expenses As a new apartment building owner you will incur unexpected expenses. We would pay for the first 100 and the tenant would be responsible for the remaining portion. 2 - 22 million per project.

We also placed a cap on the use of the tenants utility usage. 125 per square foot. This single cost-saving step saved us over 6000 per year.

How Much Does It Cost to Build a 4 Plex. In my market I can buy a fourplex that cash flows for around 100000 and if I was willing to live in the property I could use an FHA loan and house hack by living in one of the units for only 35 down. While you can purchase a smaller apartment building for 500000 to 750000 a mid-size or large apartment complex will likely cost more than 1 million.

Each unit roughly costs anywhere between 64575 and 86100. If you consider buying a duplex triplex or fourplex and apartment building than the average cost goes down drastically. Management fees vary greatly but typically fall in a range between 3 percent and 7 percent of the rent collected.