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Multiplexes-Get Started in Real Estate Investing & Make Fortune. Part-2

(Three elements crucial to buying multifamily property)

There are many ways to get started in real estate investing.
 Okay, let’s look at three elements crucial to buying multifamily property and then consider the pros and cons of multifamily property ownership.

1) Obtain Sound Financing

Establishing a sound financing package on the property is paramount to buying any rental property–you want to obtain a loan that doesn’t place excessive burdens on the property or yourself.

Because lenders evaluate rental property based on income stream, and generally structure a loan based on the property’s financial strength as well as the investor’s, always bear in mind the role that “using other people’s money” plays in financing the investment. Therefore, when applying for a loan on multifamily property be sure to present lenders with clear and concise cash flow reports. When the property is represented fairly to the lender and the income and expenses are shown to be accurate, the investor is more apt to obtain a favorable financing package.

You can find the multiplexes listings on webs sites as under www.vijaygandhi.com

2) Conduct a Rent Survey

The cornerstone of any multifamily property is the tenants and the rents they will pay to occupy a unit in the apartment complex. It is incumbent upon real estate investors, therefore, to understand local rental market trends for vacancies and rental rates when buying multifamily property.

Luckily, rental market trends are easy for multifamily property investors to recognize. Just watch the newspaper or drive around the community noting all rental properties that have vacancies. If you see few “for rent” ads or signs, or surmise that rents are increasing, it probably signals a shortage of rental units, and a favorable opportunity for you; and vice versa.

When vacancy rates decrease, for instance, property owners can be more selective about the type of tenant they rent to and establish a positive direction for the complex; perhaps even increase rents. On the other hand, when tenants become scarce, owners might have to become less selective about tenants and perhaps lower the rents just to fill the units.

You can find the multiplexes listings on webs sites as under www.vijaygandhi.com

3) Consider Economic Conversion

In cases where the former property owners have let the property run down and rents had to be decreased to keep the units filled, an opportunity to upgrade the building and raise rents might be in order. If these rental properties are in a good area of town or in an area that is returning to a former higher quality, then the remodeling of a rundown apartment complex can be a profitable venture.

Just be careful to ascertain the cost for remodeling and what impact it will have on rental income. Pure “window dressing” for the sake of appearances only, unless it has a positive influence on occupancy levels or rents, is typically avoided by prudent real estate investors. Moreover, get a qualified contractor to give you a bid on remodeling. Otherwise, what you surmised as surface issues when you were buying the multifamily property could in fact be a costly can of worms

More details in next post to follows– part3

part3:The Pros and Cons of Buying Multifamily Property

 (The comments contained on this site are for information purposes only and do not constitute legal advice.)

If you have any questions/suggestion or require more information, please do not hesitate to contact me for buying or selling and also  I will be happy to assist you negotiating your investment needs.

You can find the multiplexes listings on webs sites as under

www.vijaygandhi.com

Vijay Gandhi,
Sales Representative- REALTOR®,
RE/MAX Dynasty Realty Inc. Brokerage*
C: 647. 267. 6338 (Direct-Leave message or text)
P: 416.335.4335 | 905.471-0002 (page me-Have me)
F: 905.471.7441
E: vtgandhi@yahoo.com , vgandhi@remax.net
W:  www.vijaygandhi.com , www.gtarealtyagent.com

Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!

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