How to Buy a 66 Unit Apartment

Investor Blog: How to Buy a 66 Unit Apartment

Investing in real estate can be a lucrative venture, especially when it comes to purchasing apartment complexes. If you are considering buying a 66-unit apartment, there are a few key strategies to keep in mind to ensure a successful investment. In this blog post, we will discuss the importance of continuously adding rentals, building equity with appreciation, and timing your purchase based on equity accumulation.

One of the first things to consider when getting ready to buy a 66-unit apartment is the ability to use time to your favor. To maximize your buying power, it is crucial to keep adding rentals over time. By continuously acquiring additional units, you can increase your wealth by letting appreciation increase the overall property values. With appreciation at approximately 6% year over year, you have more ability to grow your wealth vs saving money in the bank.

Once appreciation has taken its course over several years and accross several properties, you will have enogh equity for the downpayment on your 66-Unit Apartment. For example: 2671 Rio Linda Blvd, Sacramento is currently listed for sale at $5,800,000 and the downpayment requirement is roughly $1,160,000. Have you ever saved up that much money? Well you don't have to!

Start whereever you can. Purchase one property, then two, then three, and so on until you have a path to reach $1,160,000 in equity. Then you sell off those properties and use the proceeds as your downpayment. This is what our agents at Vision Forward Realty and MLOs at Purpose Home Loans specialize in. 

Timing plays a critical role in real estate investment, and it is essential to be patient yet proactive. While waiting for equity to accumulate, you can focus on enhancing the rental experience for your tenants, thereby maintaining a steady cash flow. Implementing property management best practices, such as addressing maintenance requests promptly, improving common areas, and providing excellent customer service, can go a long way in ensuring tenant satisfaction and retention.

In conclusion, buying a 66-unit apartment can be a great investment opportunity, but it requires careful planning and strategic decision-making. By continuously adding rentals, you can expand your portfolio and increase your cash flow over time. Building equity through appreciation allows you to unlock the property's potential and leverage it for future investments. However, it is important to strike a balance and make your move when equity is equal to the downpayment for another property. By following these strategies and staying informed about market trends, you can make a wise investment decision and secure long-term success in the real estate market.

To learn more watch our recent training on How to Build Wealth with Real Estate: YouTube Video Training