Up next in All about Apartment Rentals (18 videos)
Whether you're a renter or a landlord, you'll find money-saving tips in this Howcast video series on apartments and rentals.
You Will Need
- Internet access
Research real estate
Research commercial real estate online and in books, learning city and state government laws. Gather information on field terminology, property management, and sound money and business practices through coursework at local colleges.
Consult with advisers
Consult with a team of commercial real estate advisers, attorneys, investors, and trusted business associates. Use their proven financing and acquisition expertise to find property to purchase.
Assess the value
Assess the building's value based on the shape it is in now, and estimate what it will be worth after major deficits are corrected. Review weekly, monthly, and yearly income and expenses to get a history of the property.
Examine all leases
Examine all leases to determine current vacancy rate, requiring that owners and tenants verify the information in writing.
Compare other buildings
Compare vacancy rates in other area apartment buildings. Higher-than-average vacancy in a prospective property suggests poor performance, but might also mean a lower buying price and a better opportunity to make a profit later.
Map an exit strategy
Map an exit strategy before you buy, in case things don't go as planned. Convert the apartments to condos, try to refinance, or use equity to buy more lucrative properties to spread the risk.