Some people dream of being their own bosses. Others prefer to still work for an employer, but at the same time also earn passive income on the side. For the latter, investing in real estate property is the way to go.
Perhaps the most accessible type of real estate investment that would yield immediate income would be renting out an apartment building. The demand is constant, after all, and income should be good as long as tenants occupy the units. It’s no wonder that many folks seriously consider investing in apartment buildings for sale in Vancouver.
Before you jump the gun, though, here are some considerations that you should factor in to have a smoother transaction.
Inspect the Place
If you are the buyer, it’s only proper that you thoroughly inspect the place for any possible repair works or other issues. After all, you want to buy an apartment building, not a termite infestation. Preferably, the inspection will be made with a professional building inspector to ensure that the current state of the property is up to health and safety, as well as industry, standards. Not only that, but they would know best what kinds of structural problems to look for, even if it may not be in plain sight.
Compute for Profit
If it’s passive income you want, then that’s what you should look for in multi-family buildings for sale in Vancouver. Your broker should be able to help you with the computation, but to give you a rough idea, you should be able to have a figure on the property’s net operating income, cash flow, and ROI rates.
Don’t just focus on your expected profits, though, because you will first have to deal with the cost of buying the property. Factoring in the findings of the inspection, you can have your broker, such as those from Vancouver Business Brokers to negotiate the price as much as fairly possible.
Anticipate Maintenance Costs
As the new owner of the apartment building, you will of course be the one responsible in ensuring that it is a safe and secure place to live in, and that its structural integrity is up to industry standards. You may need to hire a property manager down the road, just so you can have someone give you a helping hand with running the overall management of the property, as well as in dealing with the tenants.
Buying an Apartment Building? Do Your Homework First. Realtor.
What are some tips for investing in apartment buildings? Reference.