Commercial Apartment Buildings


Commercial Apartment Buildings

Apartment buildings are great vehicles for a steady cash flow. Most investors can’t compete because the cost of buying an apartment building is simply out of reach. Apartment buildings have a higher cash-on-cash return when you compare to other type of it and investments such as single family homes.

And in today’s world home ownership rates are going down the which means more people are actually staying put where they are now which tends to be an apartment building complex.
So the future trend for apartment building the looks very good. In Los Angeles vacancy rates are very low and rents are going higher. From an investor perspective this means that if you buy an apartment building most likely the vacancy rate will be very low and the outlook for raising rents very positive.

Also paradoxically an apartment building with more units tends to be a safer investment the cause if you have one are two vacancies it will not affect your cash flow too much. Were as if she had a vacant home and then you’re at 100% loss until it’s rented.commercial apartment building in los angeles and san fernando valley

Another interesting point about apartment buildings is that after 5 to 7 years you’ll probably have enough equity in your apartment building to trade up (up leg) or with enough cash flow to buy another building.