Should You Consider Flipping Apartment Buildings?
Apartment developers such as Steven Taylor Taylor Equities keep an eye on the apartment market. Is it possible to flip apartment buildings the way you flip houses? Yes, it is. It depends, of course, on the location of the building, as does any real estate transaction. Another factor to consider is the general condition of the building.
Apartment buildings in large cities will be easier to find and sell for a good price than in smaller towns. Look for properties in neighborhoods that seem to be changing. If the pawn shops are being replaced by artisan bakeries, this is a good place to buy a building.
Fewer on the Market
It can be more difficult to locate an apartment building for sale at a price that makes them a good investment, but they are out there. Companies go out of business or are bought up by larger firms who don’t necessarily want to keep all of the properties, especially if they are distressed.
Take a Look at the Neighborhood
Is the building near a subway stop? Is parking available? What kind of businesses are nearby? These are all questions to ask yourself when considering a property for flipping. Having amenities nearby will increase rental rates.
Is it Worth Fixing?
Some buildings are too damaged to be worth fixing, so it is important to know some warning signs. If the building is structurally sound and only needs some cosmetic work to freshen it up, that will be a good buy at the right price. If there is water damage or vandals have stolen the copper wiring, you are probably looking at more expense to fix it than it will be worth.
Flipping apartments takes more time than with houses, but if renovations are not too extensive, you can rent the property while construction is going on. Patience is the name of the game.
If you find the right property in the right place, flipping apartment buildings can be a way to make considerable cash.