Meet My Personal Apartment Mentor: Charles Dobens
Meeting – Wednesday, March 12
Charles Dobens’ program is geared for the single family investor to transition to high cash flowing apartments anywhere in the United States. If you want to buy a local 10 unit building in Costa Mesa or 200 units in Dallas, you will find what you need here.
Do you want to learn how to raise capital to buy your apartment building, ask me how I am raising $10,000,000 to buy apartments with Charles? Using an expert, such as Charles is key to doing it the right way.
Why Apartment Investing?
Source: Real Estate Investment News & Blog
Cash flow. You should get more cash flow than with rental houses. Of course, big projects take more time, research, and cash, but they pay you year after year.
Like in a Monopoly game, you may want to trade in your little green houses for a big red apartment building.
It is easier to start investing in single family homes than apartment buildings. If you have done so, you’ve noticed how difficult it is to get positive cash flow from houses. Even if you do squeeze a little out of each, it can take a lot of them to have a decent income.
Like in a Monopoly game, at some point you’ll want to trade in your little green houses for a big red apartment building. One apartment building can provide as much cash flow as twenty little houses. And once you have management in place–it may be a lot less work.
A Few Things to Consider…
Apartment values are more dependent on the income they provide than houses. Houses are made mostly for owner occupants. The pool of buyers will always be larger for homes than apartment buildings. When you buy a house with a similar down-payment to an apartment it’s unlikely that you will have a positive cash flow.
Appreciation vs. Income
Houses, unlike apartments, are more likely to appreciate because they have a larger pool of buyers, while apartment buildings rely more on the income to increase value. In some cases, apartment buildings have additional value derived from them in the future, such as remodeling, condo conversions, rezoning, or rebuilding.
Having a 20-unit building, for instance, in one space helps keep management down, maintenance, accounting, etc. Most of these expenses can be reduced compared to houses. Your business is in one location versus 10+ houses spread around the valley. Now imagine each house being in a separate LLC vs. the 20-unit building in one LLC.
I wouldn’t go as far as to say that apartments are easier to maintain than homes because with apartments, you have a higher tenant turnover. But while one house has one roof, and four houses have four roofs, a fourplex has only one roof, though 4 kitchens and more bathrooms and more appliances.