Apartment Investing Strategies

Apartment investing is always a good place to apply your time and energy because no matter what approach you take, they always pay off. As of this writing apartment investing is getting pretty hot.

We are a few years post the 2008 financial crisis and residential lending is still trying to recover, as is job growth. The rate of foreclosure has come down a fair amount, but still remains high. The net result is a broad trend of people renting apartment units instead of owning a house. The consequent high demand for rental units has made occupancy rates low and put an upward pressure on rental rates

If you are an apartment owner these are good times. Your cashflow is strong and the value of your properties are going up.

If you are not an apartment owner, now is a good time to get in the game. Not so much because of the rising market (this phase will end, and another will begin), but because the rising market makes it easy for you to put your first deal together.

Let’s say you have decided to get into apartment investing, what is the best way to go about it?

From a macro level there are three basic plays. 1) Assignment Flips, 2) Turnarounds, 3) 1031 Tax Deferred Exchange.

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