How to Buy Your First Apartment Building

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.

It could be because of fear of the unknown, or it could be from not taking action. Either way, many people drop out in the process between having the idea of buying an apartment building and actually making the purchase.

Multifamily investments can provide passive income to their investors. In addition, they lend themselves to professional property management much better than single-family residences because of their scale.

Pros of Apartment Buildings

Compared to office or retail, apartment buildings have a lot more day-to-day management and issues. Compared to other categories of commercial properties have the potential to have a triple net lease.

Cons of Apartment Buildings

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

The Steps of Buying an Apartment Building

In the commercial space, an amortization of 25 years is pretty standard. These will almost always be adjustable-rate mortgages. The 30 year fixed interest rate loans are not common in the 5+ family market.

Pre Qualifying

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