That is a really good question and you started off right by doing the research before just taking someones advise and jumping on the first deal. From talking to commercial property owners and investors, there are a lot of complicated answers and scenarios sure but there are a couple of SIMPLE time tested requirements that are as old as time. It doesn't matter whether it is a commercial or residential, single family or multi these principles apply especially in this economy. The biggest factor in Apartment building investing is 'OCCUPANCY'! If it is not at 80-90% occupancy, what is causing it not to be: bad management, location, property codition? If any of these are factors, what is the price that they are offering? Is it low enough to allow you to be able to have the assets or ability to remedy these negative factors that is causing it to not have full occupancy. Plus too, consider the location, are there other apts in the area and do they have high occupancy rates as well? But the most important factors are as I mentioned: LOCATION, CONDITION, AND PRICE! Start out with a minimal risk as possible and you are doing good by doing the research! Thats just an observation that I have. Are you just looking in the Texas area or Would you consider Arkansas as well?
Apr 22, 2010