Managing 20+ units is a full-time job. Unless you plan to be on-call 24/7 for clogged toilets and noise complaints, you need a professional company. Budget 8%–12% of gross income for management fees.
Built 15–25 years ago. Well-maintained but slightly dated. Often the "sweet spot" for investors seeking a balance of stability and growth. buying apartment complex tips
Built 30+ years ago. Needs updates. Usually located in blue-collar areas. High management intensity but potential for high returns. Managing 20+ units is a full-time job
Newer builds (under 10 years old), high-end amenities, high-income tenants. Lower risk, but lower "yield" (profit margin). Built 15–25 years ago
Lenders use this to see if the building generates enough cash to pay the mortgage. Most lenders require a DSCR of 1.25 or higher . 2. Conduct "Boots on the Ground" Due Diligence
. It helps you compare the profitability of different buildings. A 6% cap rate means the building returns 6% of its value annually in cash if you bought it with 100% cash.