Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 9 years ago on . Most recent reply

Account Closed
  • Investor
  • Henderson, NC
208
Votes |
484
Posts

Buying apartment building - thoughts?

Account Closed
  • Investor
  • Henderson, NC
Posted

Long story short - I came across a large industrial building sort of accidentally, which I have divided up and leased out at a profit. This is my only experience as a landlord, and I find it relatively easy with an industrial building. They don't have the same rights residential tenants have, and not much to fix and maintain like carpet, drywall, appliances, etc. It mostly takes care of itself.

I'm now considering buying a 6 unit apartment building as another investment. My mortgage on the building would be roughly $600/month. It currently has 4 units rented for $1250 gross income. The other two units can be rented. The building is in good condition, but was built in the 1930s. I think I could ask for more rent with some updating, but this is not required.

I would like to know what your thoughts are on this investment. It seems a little too easy to me. I know there will be increased maintenance to take care of, much of which I can do myself. I feel like even in a worst case scenario, if I have 2 tenants and 4 empty units, the property would still pay for itself. I would probably update the empty units first and then update others as tenants leave. I do not yet have any detailed information about the current tenants but would screen them before purchasing.

My other option would be something like a duplex, with only 2 units. A lot less work there but less rent also.

Is taking care of a 6 unit apartment going to turn into a full time job for me? Would you recommend starting smaller?

Most Popular Reply

User Stats

60
Posts
89
Votes
Damian Leonard
  • Investor
  • Fort Worth, TX
89
Votes |
60
Posts
Damian Leonard
  • Investor
  • Fort Worth, TX
Replied

Go for the 6 unit. I think you'll find that the more doors you can buy under one roof the better. Go bigger and partner with other investors. I wouldn't mess with duplexes if you have the capital to invest in bigger properties. You didn't mention what the purchase price would be, but it sounds like a good one to buy and manage yourself. If you find it to be a pain to manage yourself hire a management company to do it for you. 

Loading replies...