Building an apartment complex
- Thread starter Geronimo
- Start date
It might help if you state what country and city you are looking to build in because building regulations, building costs, time taken to complete a build, taxes, etc all vary by location.
Where I live currently the rent is very high and property values have been going through the roof for years, but still I wouldn't want to be a landlord. Gotta deal with god knows who renting, maybe not paying and trashing the place and claiming squatters rights, gotta deal with city red tape. Too much hassle for me, but I look forward to hearing about your experience anyways and hope it turns out better for you.
Geronimo said:
Are you a builder, with a team of contractors, have some experience as a developer, or at least own the land you will be building on? Otherwise I would consider just buying an apartment complex, perhaps a fixer upper?
If you don't have experience, maybe you could work for a while for a contractor/developer, to get your feet wet and also to learn about your market hands-on.
Seems like you are undertaking 2 businesses here: construction and real estate. Construction especially in some countries - many 3rd world ones - is a major pitfall of immense proportion. If you have experience in both businesses, then fine.
An easy business is rental real estate single units, it gets more difficult when you administer entire buildings, then construct your own. A few tips off the internet won't be enough when construction deviates like heaven and hell from country to country.
An easy business is rental real estate single units, it gets more difficult when you administer entire buildings, then construct your own. A few tips off the internet won't be enough when construction deviates like heaven and hell from country to country.
I'll be following this thread.
Location is of utmost importance especially if you will be running it like a hotel or for medium term rental. This will depend on the geographic region you are in, but some general rules will apply: close to amenities, closer to the city core, within a zone that permits this kind of development (as each and every city has different zoning regulations), and many more nuanced req's.
Location is of utmost importance especially if you will be running it like a hotel or for medium term rental. This will depend on the geographic region you are in, but some general rules will apply: close to amenities, closer to the city core, within a zone that permits this kind of development (as each and every city has different zoning regulations), and many more nuanced req's.
BlastbeatCasanova
Kingfisher
Honestly I think you’d be better off with a storage unit complex. You don’t have to deal with tenants and I assume there is way less overhead
BlastbeatCasanova
Kingfisher
@Kel
I’m not sure why the snark was needed, or what my previous business exp has to do with offering a suggestion on an anonymous forum.
Dealing with people, trying to collect rent, utilities, etc vs someone paying you to store their stuff, seems like a lot less headache. Apartments are probably still very profitable but I know several people that have had tenants do $20,000 in damages. If you own a ton and have an agency taking care of all the dirty work a la Grant Cardone would ideal.
Reading back on the OP it seems that the poster is trying to work a tourist niche so I suppose my original comment wasn’t exactly relevant, although with people owning more stuff than ever I think storage units are a niche that could still be profitable
I’m not sure why the snark was needed, or what my previous business exp has to do with offering a suggestion on an anonymous forum.
Dealing with people, trying to collect rent, utilities, etc vs someone paying you to store their stuff, seems like a lot less headache. Apartments are probably still very profitable but I know several people that have had tenants do $20,000 in damages. If you own a ton and have an agency taking care of all the dirty work a la Grant Cardone would ideal.
Reading back on the OP it seems that the poster is trying to work a tourist niche so I suppose my original comment wasn’t exactly relevant, although with people owning more stuff than ever I think storage units are a niche that could still be profitable
Simeon_Strangelight said:
Listen to this guy...
I've built a few small ones. There's a lot that goes into this stuff you don't realize. From day one you need a lawyer and a good realtor. The second one I did has 10 units. After all the permitting and other government nonsense, then all the construction, they came on the first day I had a rental add out and said the development needed another fire hydrant in the back run off the main line. That took maybe another six months with all the permitting and government crap to get done. That whole time I was hemorrhaging payments. It was sad.
Aloha!