Need a reality check on an apartment building investment

Apr 21, 2011 24 Replies

Um, 'scuse me but Gene posted that, and it is a very sensible issue of who is going to handle the day-to-day business. I'm waiting to see if Igor tells us how many units in total are in the complex, to get some idea of the economies of scale, and whether or not the other owner(s) have a fix (like a resident manager).

The original question concerns who, exactly, owns what, and who is responsible for which maintenance, insurance, etc., such as the shared stairway (cleaning, painting). The recorder of deeds (intenet access) probably has the property description in some detail, but probably not a copy of any agreements as to standards. The insurance probably gives some specificity, but the other owner(s) would be an essential contact (residents should have the phone number for you as well as valuable info about the conditions and management).

A little update for Tad and the rest of the crew.

I do not think that I will be buying those apartments.

This weekend, I won a real estate auction for a house in the center of our small town, on a 1/2 acre of land.

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The hammer price was $70k. The auctioneer's fee is 3k.

I now think that auctions are a better way of buying into a real estate investment, based on the prices that I am observing at auctions.

Yes, there is slightly more risk and slightly more work, but more potential to make money.

i

interesting little place - just drove past it on the way to the bird feeder place on the corner.

BTW - went to get some seed for the finches, and saw that you have now placed it up for sale with a realtor.... Interesting... bought for $70k - listing for $124k -

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