While I'm aware of some of the pitfalls and potential downside (especially with complex regulations and compliance issues), I'd really appreciate any and all opinions and facts that discuss installment contracts as good, bad, ugly (and other) so that I can view and assess this strategy from a diversity of viewpoints and experiences.Any thoughts, BP Nation?

I found a property that has a 3 units. 2 of the units are 2/2.5 and the other is a studio. Currently the owner is renting 2 of the units for 2400 a piece and living in the studio. I would be doing the same.The propert...

I spent $5,000 as earnest money on a 133-unit apartment complex and then I syndicated the deal and raised $1M.

Hello BP,I'm looking into investing in large apartment complexes.  

There’s about 3 apartment complexes in town and all of them are full with a waiting list.

Here it is:http://www.realtor.com/realestateandhomes-detail/1...There are two apartments ($3500 and $5000) in the same complex. 

The property Property $200,000 Down Payment 20% - $40,000 4 unit complex – rent per unit $800/month ($3200/mo total) 2% Rule – at 2% this property would rent for $4,000/mo This property is at 1.6% 50% rule – 50% of rental income will go toward expenses This property would be $1600/month This expenses include – repairs, vacancies, utilities, taxes, insurance, managements, turnover costs, and occasional big ticket repairs Net Operating Income – NOI Income after fees, these would be the fees listed in the 50% rule and do not include principle and interest For this property - $1600 (not the true number, but based on 50% rule) Cash flow Any money left after subtracting principle and interest from NOI Prinicple and Interest – 30 yr fixed at 4% on $160,000 - $764/mo Cash flow = $3200 - $1600 (NOI) - $764 (P&I) = $836/mo or $10,032/yr Cap Rate Annual NOI/purchase price $19,200/200,000 = 9.6% Return on investment of $40,000 over 30 year life of mortgage Cash flow - $10,032 annual return – 25.1% return 30 years = $300,960 This is a conservative estimate since this money could obviously be re-invested as it was received monthly and the rent would be increased to reflect inflation over the 30 year period Property value at 3% appreciation for 30 years $485,452 30 year total return on $40,000 485,452+300,960 = $786,412 This is a ~10.5% annual return on investment $40,000 invested in stocks/mutual funds at 7% would have returned $304,49I believe this is all correct, but wanted to get some feedback to confirm my understandings of these concepts was correct.  

This would be a long term hold for cash flow and would be a stepping stone from smaller multi's (own 13 units in 4-5 unit complexes now) to larger apartment buildings.

If you are intentionally paying someone under the table, maybe a property manger at a complex, then you could owe $250 for intentionally not filling.

There is very little, if any, residential in the immediate area.We own a couple of properties in the Aurora / Denver market which benefited greatly from a similar redevelopment, where the University of Colorado and various other medical entities consolidated into one major complex/area, and that spurred all sorts other businesses (medical-related as well as others such as hotels, restaurants, etc.) and residential property values in the area have appreciated very nicely.