In other words, do you think its better to scatter yur complexes around or to just have them all in one location?
And no i dont wanna invest in anything else right now besides residential real estate
2007-03-09 16:31:33 · 8 answers · asked by . . 1 in Business & Finance ➔ Investing
Well, I don't care what you are interested in investing in but if it were me I would rather have three buildings if possible, if affordable and the building codes and property and zoning allowed just because if a fire broke out you might loose it all with one building. Also you could always make one building for the elderly and handicapped so as to make it quieter and more enjoyable for them, to retain tenants. Also, a building with all 1 bedrooms and maybe one or two with all 2 or 3 bedrooms depending on your goals and the climate of rental needs in your area, more kids more problems I have found, so I like 1 and 2 bedrooms myself. Good luck whatever you do. I am always playing around with the idea then I think I'm too old for this crap lol. It's a lot of work but I really like it.
2007-03-09 16:46:22 · answer #1 · answered by MISS-MARY 6 · 0⤊ 0⤋
Hi,
You decision should depend on the cash-flow from the respective properties as well as the issues such as location, population growth etc.
I can recommend you a piece of software I have been using lately for investment property analysis and am quite happy with - Personal Finance Associate by Parcus Group.
Simple to use software with great features incl. budgeting, financial planning, shares valuation, real estate investments analysis etc.
Saved me an amazing amounts of time while looking at the properties on the web. You enter some basic property info ie. rent, outgoings etc and the program will give you some great measures of the financial performance of the property such as cash on cash return, ROI, IRR etc... if the numbers stack up at the high level you go and have a look without wasting time with every lemon out there.
Definitely check it out at:
http://www.parcusgroup.com/finsoft/realestate.html
Great value for money for under US$24 / £12 for a single user license.
Regards
2007-03-12 18:52:28 · answer #2 · answered by Finance_Expert 2 · 0⤊ 0⤋
That's difficult to answer with such limited information.
It's generally better to diversify....but not always. You may or may not be able to cut down on management and other expenses by investing in only one building.
You mention nothing about the location of the buildings, the condition of the buildings, the occupancy of the buildings, the cash flow of the buildings, the rents of the buildings (above/below) market.
Any answer with out all this information is pure conjecture.
2007-03-13 07:32:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If you look after them yoursellf, it would be better to have 3 smaller ones. If you hire manjagement, one big one would be less expensive. Only one management person. Unless they are all in the same spot. One roof is cheaper to redo than three. If each building has an elevator, then one would be cheaper.
2007-03-09 18:20:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Get one unit for possible maximum profit but also higher risk.
Get 3 units for less maximum profit but less overall risk.
2007-03-10 03:49:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋
1 building for sure....cut down on expenses
2007-03-09 16:35:02 · answer #6 · answered by Tim B 2 · 0⤊ 0⤋
it all depand on taxes and location.
2007-03-09 16:55:34 · answer #7 · answered by ? 6 · 0⤊ 0⤋
THREE 10-UNIT BUILDINGS
THINK THE RERURN WOULD BE BIGGER
2007-03-09 16:35:44 · answer #8 · answered by tupac4evaa 3 · 0⤊ 0⤋