Many investors buy apartments they rent to lots of different customers. People who are uninterested in buying a home are a steady market and income stream for people who are into this type of investment.It isn’t going away. Because many people have dropped out of the housing market, apartment rentals are stronger than ever.
Renters can cover a wide range of people from students and other singles, to families with all their variations, and to seniors who no longer wish to be bothered with keeping up a house.All of these many markets can be possibilities for investors.
Your choice of a market may come down to the location of the land. Renters with families may want a particular school district. Some renters will want to be near work options and public transportation and avoid commuting. Some will want to be close to medical care and grocery stores. It’s important to figure whatever your target market wants and give it to them to enhance your investment. You can get more information on Commercial Loans With No Proof Of Funds.
All of these markets may have needs and interests that make a specific property more desirable.
An apartment may be near a college or university, making it a good rental for students, an ever changing group. While there are likely to be upkeep and damage issues, landlords can learn to cope with the various problems.
For one landlord, the problem of a rowdy group of young guys went away when they blew up the only toilet during a party. The unit was instantly uninhabitable and some of the partiers were arrested. The renters were out without having to be evicted by the landlord.
Instead they sort of managed their own eviction. The landlord said they were unable to replace the toilet any time soon so the rats with the firecrackers wandered away to some other place, public indecency being a problem they couldn’t ignore without being arrested…again. They were also charged with property damage to the building.
Such foolishness tends to be its own reward. The legal fees alone were a problem for them.
These types of problems notwithstanding, students like to have amenities like community pools, exercise rooms and laundries in apartments. Shared facilities tend to be a security risk because people often use them at night and they may be alone. Many young people go around in groups for many of their activities, though not always.
Students also want a pizza place nearby and some attractions within walking distance. Married students may like a place that is quieter than single ones desire. It depends.
Families want amenities that are different. They like to see pools and playgrounds, though the liability may be more than many landlords want. Accidents happen and codes require things that may be expensive and difficult to accomplish. A practical way to avoid the problem but still give renters what they want is to locate your property near public parks where someone else has created an attraction you don’t have to purchase or insure.
People with families consider laundries a must have. But for people who rent apartments to the public, laundries, like most plumbing, can be a problem. Washers often leak. In Europe they have connections that have conquered the problem, but in the US it has not happened. Instead floods happen. As they will tell you on This Old House, water does more damage to buildings than anything else you can name. Apartments that are built of masonry are way sturdier and resistant to damage than wood construction. For people who want to rent apartments to the public it’s truly a must have.
Many renters want wood floors, but they are a problem. Ceramic tiles that look like wood are often both cheaper and lower maintenance than wood. Carpet, though unpopular, is easy to clean and cheap to replace.Renters with expendable income might want amenities like in-house restaurants, pizza stores, dry cleaners, beauty shops, and gyms. Some city locations have these things as attractions for both apartments and condos.Older markets might want medical care options as well as some types of assisted living, a need many people have. Things like delivery for grocery and medical needs would be a priority for some. Discover more here about Commercial Loans With No Proof Of Funds.
In many cases an investor’s ability to spot a need and fulfill it can be the difference between success and failure. You will also probably need financing. Have your credit and down payment funds in order. If you have other issues, you may need to go the hard money route. What kind of issues am I referring to. Here are just a few. No debt service requirement (DSC) loans, multi family or apartment loans with 75% LTV or higher, hard money loans with a bankruptcy or foreclosure.
What kinds of unfilled needs do you see in your area?