does anyone own a apartment complex

[jdgay22]

how much unit do u have, and how much did you have to put down for the down payment. what is your monthly mortage, and what is your monthly insurance cost plus maintence. and what do you manke income wise of tenants each month. im really intrested in purchasin a income property

[PRICEPLUS]

I hate to be facetious but the only comples I own sits on a Monopoly board.

[Broken Arrow]

I know a guy who owns an apartment complex. He loves being a slumlord though, and even has that stereotypical, gritty personality to match.

He currently owns only one (a 4-family unit), but says that he's thinking about buying more once he pays it off in about five years, according to him.

He's also the kind that likes to show off about how well-off he is, but will gloss over any negative details that there may be. I guess it's just the way he is, but the point is, it's also hard to gauge just how viable this venture of his has been for him.

Beyond that, I don't have any details to offer you.

Oh yeah, I also have a friend who has two mortgages, but is renting out one of them. He's not really the slumlord type, but he most certainly is the entrepreneurial type. When things do work out for him (as in, when his tenant pays on time) the rent he's earning is almost enough to pay for the mortgage. That's good for him. However, his tenant is famous for being late and not paying in full. He has already issued several eviction warnings, and even had served papers at one point.

Overall, he has confided in me that he's close to just kicking this tenant out and selling the property. Coming from a guy like him, it must have been really bad because he's not bearish in any way, shape, or form. Part of his feelings though, also had to do with the fact that this issue has also caused stress with his wife, so it's important to keep in mind that business ventures can exact personal tolls.

I'm not against people into real estate ventures though. If you read my blog, you'll see another example of one that is working out VERY well. Of course, she's much more um... intelligent about it and she's in a better position to make such a thing work. I guess that's the point though. Regardless of what kind of business you want to get into for yourself, I guess the biggest thing is to approach it as prepared as you can be and with as much savvy as you can muster. The business example I have in my blog is actually her MBA final thesis, and she had the benefit of peer review from her professor and her classmates. Not that even that is guaranteed, but it's better than just jumping in blindly.

[boefixepa]

I've known a few people who have rented a second home or managed apartments. It boils down to this.....there is a reason people rent and don't own......

If you are willing to put up with it or can hire another person to put up with it, then maybe it's for you. But the people I have known have had very little good to say about it.

[Ima saver]

I had 3 rentals and it was the worst time in my life. They didn't pay, tore the place up, it was awful. I had to take one to court. I would never do it again. We built spec houses, sell them and make a profit.

[msnln]

I have three rental properties. One I had over 10 years (others I had 8 years and 5 years) and so far I have not had any problem, other than gaps between leases when I do not get paid rent. I think the key to having a successful rental property is having the right agent. I have RE agent, whom I have worked with for over 5 years and she is just great! When she finds a potential renter for the property, she get standard rental application, past year's tax return and previous two pay stubs from the potential tenants. She then runs a credit check on them and bring me the package for me to review. She reviews the file and does not even bother bringing the file if she does not feel comfortable. I had one tenant that had made improvements during her stay and when she moved out, insisted she repaint the premise saying she wanted to leave it in original move-n condition!

To find the right tenant, I have had property vacant for up to six months but I think that is a lot better than finding a tenant from hell and having to go through the legal process to remove them. The process can take over a year and once the process is started, you can pretty much kiss any future rents good bye. If you know what you are getting into and find the right tenants, I think it is a good investment. But before buying an investment property, you need to run the numbers to see if the venture is profitable. With high RE prices, I don't think positive cash flow deals exist right now, especially here in NY area.

[CRFSaver]

My manager owns about 10 units that he rents out right now including one in a 5 unit complex. He loves it and is trying to get me to do it (not sure yet...) but there are some major advantages depending on your income. It is possible to get uncle sam to pay for some of it as if your income is less then 100,000 you can deduct up to 25,000 of passive losses. You might consider doing a duplex for your first rental as you are then on site, and get the double tax benefits of passive losses as well as the interest on the owner occupied portion of the mortgage.

[msnln]

Oh, there is one thing I would like to add to my post. Don't believe informercials or advertisements on how you can make a ton of money from RE investments and how someone with little or no money can buy bunch of houses,etc. In my 10+ years of RE investments, rental income just paid bills for the property and actual profits from the rents were virtually none. Long term, with a good market, property values have gone up which is where I made my money but I don't think there is much more upside now. RE cycles take about 10 years so I would be looking to buy my next property in 5-6 years when market has bottomed out. You will know the bottom when everyone around you looks at you like you are crazy when you talk about RE investment and papers talk about people offering higher than asking for rents in NYC to get into prime locations (which actually happened during mid 90s).

[msnln]

CRF, that is a good point. Also, you can depreciate an investment property over time. I think it is 29.5 years. In essence you have positive cash flow that you can deferr paying tax on until you sell the property and tax deferral is always good