IM INTERESTED IN INVESTING IN SMALL APARTMENT BUILDINGS AND FOURPLEX HOMES HOW DO YOU MAKE MONTHLY PROFIT?

From what i have listened we do not what the ruin is the indicate afterwards i would pretence upon an the 8 section unit office building during 800 dollars per unit=6400 dollars the month we would have the little cash! I have review we do not i assimilate taxes debt as well as the little upkeep though after all of which i consider we could have similar to 2500 hundred the month right?

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{ 2 comments }

meg August 18, 2011 at 11:29 pm

It depends on the cost of the building and the amount of your down payment, but it is unlikely that you could make that much unless you got a very good deal on the building. A rule of thumb is that buying rental units is a good investment if that the monthly rents are equal to 1% of the purchase price, so if you can buy such a building for $640,000 it is a good deal. Assuming that you have a 20% down payment, which is what banks want these days, you would have to have $128,000 in cash. Besides the things you mentioned you also need to pay for insurance and allow for the fact the rental units are vacant 5 to10% of the time and it usually cost a month rent as a fee to a real estate company to get a new tenant.

Oldwhiteguy2earth August 19, 2011 at 12:18 am

Well, if you are planning to pay cash for income property, then you can make a respectable return unless you make a lot of mistakes. Almost no one can pay cash, and that is where people lose their wazoo. I personally feel that you should have at least 30 to 50% down to be sure of just breaking even.

Money is made in income property in three ways: Tax benefits, reduction of principal of the loan, and leverage.

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