Economies of Scale in Apartment Investing

Apartment Investing allows you to develop wealth at a faster pace than most investments because of their economies of scale. This is because small rental increases are multiplied by the number of units in each property.

Lets break down what this really means:

ONE ROOF
Having many tenants under one roof through apartment investing provides you the ability to employ professional property management, allowing you to manage your manager from wherever you may be, no plunging toilets or chasing rent checks!

BETTER CLASS OF PROFESSIONAL
From Property Management to building trades, having a centralized property rather than smaller scattered site single-family homes will lend itself to hiring a better class of professional, as opposed to a handyman.
Making sure that your tenants get their service calls attended to promptly is essential in retaining that tenant. A property management renewal fee is a fee we’re happy to pay.

PROTECTION FROM VACANCY
Your risk is substantially reduced because there are many tenants paying your mortgage. One vacancy in a 50 unit building is planned for and hurts much less than when your single-family tenant moves out. These single-family “cheap” rentals are what many real estate investors are offered as an entry point to real estate investment – we challenge you to think bigger!

TAX ADVANTAGES
One of the tax advantages of investing in apartments is the deduction of furniture, fixtures and equipment. Standard disclaimer ☺ *I am not an accountant, so make sure that you go over all tax allocations with your accountant.

SAME EFFORT, MORE PROFIT
Not only does economy of scale in apartment investing favorably compare apartments to single-family rentals, but also pertains to smaller vs. larger apartment properties. Two vacancies in a 10 unit building is 20%! With all of the front-end work that you as the potential owner puts in for market research, due diligence, making the deal, and asset management, I urge you to consider putting those same efforts towards a 40 unit rather than the 10. The work is about the same with larger upside!

Making the most of your investment dollars has never been more important.
I truly believe that there is an apartment deal out there for each of you. Whether you’re creating diversity for your portfolio, or want to transition out of your current job and build your real estate business, multifamily real estate is the fastest way to create true wealth. Economies of scale is a clear example of the power of focusing your efforts to get a more profitable result.

About Chris:  Christopher Urso began his investing career at 21 years old with the acquisition of his first investment property in Paterson, NJ. His real estate investment company, URS Capital Partners, now controls over $50,000,000 of multifamily assets throughout the Midwest and Southeast United States.

In addition to actively managing URS Capital Partners Christopher is passionate about helping individual investors achieve their personal goals through apartment investing.

Early in 2011 he launched Elite Apartment Coaching to provide individual investors with the personal coaching, knowledge, tools and resources to become a successful multifamily real estate investor. Being an active investor allows Chris to further develop Elite Apartment Coaching with real time, current market information and techniques that allow his clients to excel well beyond their expectations. His work ethic and dedication to his investors and coaching students is second to none.

Christopher has been invited to speak on stages nationwide and he has been featured in Co-Star, Yahoo Finance and Personal Real Estate Investor Magazine.