How to Buy Your First Apartment Building

Gray Frame Corner
Gray Frame Corner

Investing in your first apartment building can be a nerve-racking experience.  Many people who set out to invest in an apartment building end up never making the purchase.

Pros of Apartment Buildings

Multifamily properties benefit from economies of scale. It can provide passive income to their investors.

Cons of Apartment Buildings

Compared to investing in a single-family home, apartment buildings have a much higher cost of entry. This can be a barrier for many investors who are just starting. 

The Steps of Buying an Apartment Building

There are 7 steps to buying an apartment building. Each step has its own process and challenges.

Pre Qualifying

You need to know some loan terms and the various loan options available to you before you can really hone in on what you can buy.

Shopping the Properties

You might start simply by looking on Loopnet or the MLS and running your own pro forma numbers when shopping properties.