Selling apartment buildings

Posted by Techyscouts | Posted on 04/12/2024
  •  Real Estate

    • As prices on everything continue to soar, housing becomes less affordable. However, if you are a real estate broker or you just want to buy and sell properties, selling apartments is a smart move. These buildings, particularly in the South Bay area near Los Angeles, are returning profits that would make a Rockefeller’s eyes bug out. Michael Millea, a real estate broker in this area, has seen the sale prices climb ever higher and has brokered some of those sales himself.

     

    What Apartment Prices Look Like Right Now

    Torrance, Inglewood, the Beach Cities, and most other areas of the South Bay area have seen a 29% rise in apartment rent. The growth in property sales has been higher, reflecting an 84% jump in investment costs. Vacancies have remained significantly low, at a mere 4.1%, which means if you can fill an apartment building with no vacancies, you have a solid return on your investment in the long run.

    There’s even more great news for investors. A lot of apartment buildings are for sale. New luxury apartment building construction is also on the rise, with the potential to make offers to the current owners. While the cost of your investment in these properties and this area is higher than you may want to buy into, the rents coming in every month might spur you on.
     

    Making a Smart Investment

    If there’s a property that interests you, talk to the broker or real estate agent selling it. Get the current statistics on the tenants, the length of time each tenant has lived there, the current rent, the total rent collected every month, and the bottom dollar selling price. Get a building inspection so you know what you may need to repair or replace within the next three years. Then you can make a decent offer that is in line with what you can make monthly and what you may lose for repairs and code work.
     

    Selling Apartments Instead of Renting Them Out

    If you would rather buy and sell apartment buildings, you can do that, but you would still have to hold onto the buildings until they make more money. Another investor won’t be interested unless you have upgraded the property and ensured that every apartment is taken for at least a one-year lease. Sometimes this type of buying and selling of apartments only breaks even. Be sure this is going to make a profit for you over just renting out units and being a proprietor.

     

    Need Some Sound Advice and a Place to Start?

    Greenhorns in the property business should seek out sound advice and property leads from Mike Millea. Discuss your budget and what you hope to achieve through selling apartments or apartment buildings. Then you can check out a few of the properties Mike Millea suggests. Call today!

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