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Now is a Great Time to Buy an Apartment Building

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Time to Buy Apartment BuildingAdditional income could be used to pay a variety of debts or used toward funding a retirement account. Whether an entrepreneur is seeking a new side hustle or to find a way to generate some passive income, ownership of an income-producing apartment building has plenty of potential. Direct Apartment Lenders offers funding for investors who are qualified to buy an apartment building.

Advantages of Owning an Apartment 

Owning an apartment has some amazing benefits for an investor. 

As the owner of a property with five units or more, an investor could live within one of the units for free or for less money than it would take to rent an apartment somewhere else. In many instances, an investor is able to pay for a property’s expenses with the cash flow that is generated from renting four of the units within a five unit apartment building. 

Living within an owner-occupied property can enable an investor to take care of any problems or repairs much faster. Also, while residing within one of the units, an investor can save money toward buying another apartment building or for retirement.

An apartment building can provide passive monthly income for an investor. This means that an investor can generate money every month for as long as the apartment units are rented.

When the local real estate market improves and properties that are similar to the subject are sold for more than the amount that was paid for the apartment building, the owner will be on a path toward building equity.

Over a period of time, an owner may be able to borrow money against a portion of the equity or to sell the property to obtain money from the proceeds.

  

Apartment ownership also provides an opportunity for an investor to build generation wealth. The asset may be given to an investor’s spouse, children, grandchildren, charity or to anyone who is selected to receive ownership of the property.

Rising Cost of Residential Homes

The cost to buy a home is too difficult for many families who are living from paycheck-to-paycheck. Typically, it is incredibly challenging for families to save enough to provide a down payment toward a home and to pay for certain closing costs. There are several no money down and low-down payment programs, but many homebuyers believe that a 20 percent down payment, plus closing costs are required to buy a home.

This presents an opportunity for an investor to provide a quality living environment for families who need a place to reside.

Additionally, the wages for many first-time homebuyers have not increased with the pace of rising housing costs. This could lean toward a stable rentable rental market for the years ahead.

Millennials are Renting More Often Than Buying a Home

Unlike the decisions that were made by many folks from recent generations, millennials are opting to rent an apartment versus buying a home.

In many cases, a high debt-to-income ratio prevents many millennials from qualifying to buy a home. Monthly obligations, such as student loans, a car payment and credit card debt can elevate a millennial’s debt level beyond the affordable housing thresholds.

With extensive debt and escalating real estate prices, buying a home becomes less important than renting an apartment for millennials who need somewhere to live until their financial condition improves.

Some reports suggest that millennials prefer to rent apartments versus buying a home. Instead of spending time to maintain, fix up or to repair a home, millennials want to enjoy their time away from work without the burden that a home requires.

This is why owning an apartment building is a wise idea. An investor who buys an apartment building that appeals toward trends of the local market may be able to generate a tidy rent roll every month. 

Low Mortgage Interest Rates for Apartment Buildings 

While mortgage interest rates are low, now is a great time to buy a multifamily apartment building, an apartment building or a triplex apartment.

A lower mortgage rate will result in a lower monthly mortgage payment, which should lead toward more money each month for an investor.

Once mortgage interest rates begin to increase, a higher mortgage rate and a higher mortgage payment will leave less money for the investor.

We fund apartment loans at competitive rates and lending terms that are ideal for most investors.

Therefore, there is no time like the present to speak with an apartment lending professional about buying an income-producing property. 

Get the Process Started Right Now

Borrowers can submit an inquiry about loans for apartment buildings right here, on our website.

Simply, visit our “Contact” page and provide some basic information about your financing needs.

We provide attractive rates on apartment building loans throughout the United States.

Contact Direct Apartment Lenders today for more details about investment property mortgage loans.

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