How Much Money Does It Cost To Buy An Apartment Complex
Annual Income before taxes Monthly Income before taxes Budget at 30.
How much money does it cost to buy an apartment complex. By our calculations weve increased the value of this apartment complex by over 100 as we currently value this property at 600000 and it only cost about 130000 in renovations to get there. Then your net operating incomeshould equal approximately 500000 per year. Typically youll need at least 10 down to buy an apartment building.
Compared to single-family residences duplexes triplexes and fourplexes apartments offer investors appealing advantages. In most cases yes having multiple income streams can produce a very high return on investment. 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.
Max Approved at 3X. On a building producing 500000 in rent a 5 percent management fee would add up to 25000 a year. Its amazing what happens to utility bills when tenants share in the responsibility.
The above figures place this construction at an 85 and 200 per square foot cost. This can be done if you wholesale the property partner with an investor or find a hard money lender who will finance 100 of the loan. Suppose your complex has 50 units and the average annual NOI per unit is 10000.
It could be anywhere from 3 to 200 million. Because there is a guaranteed income from multiple sources. However while rare there are ways to buy an apartment building with no money down.
But when it comes to the cost of an entire building complex theres more to simply crunching the figures based on the average unit cost. However the national average stands at 125 for most contractors. We also placed a cap on the use of the tenants utility usage.