How to make money off owning an apartment?

July 30, 2009 by admin
Filed under: Make Money Online Fast 

So my dad just retired after 30 years of being an anesthesiologist, and he wants to buy an apartment for me to run it for him, what are some good tips on how to make good money? The apartment is 1.2 million,hes going to pay full no mortgage, It has 15 2bdrm and 7 1 bdrm. Thank you for helping me out!

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2 Comments on How to make money off owning an apartment?

  1. Spartan on Thu, 30th Jul 2009 12:49 pm

    2. Hi,

    Property is a great investment method. Not many people are given a $1.2 mil apartment to manage, you should definatly take advantage of this opportunity.

    Most people look at the rent they can earn from property, decide that paying $1.2 million to earn $2-4k a month isn’t worth it and move onto another area of investment. Stupidly they forget that the $1.2 mil apartment is going to be worth ALOT more in the future (around 6% growth a year). The rent is going to be a side income for you until you sell and make a nice capital gain.

    The biggest advice I can give you is to not be scared to terminate a lease on a difficult tenant. My dad recently had to spend $20k to repair a leaky roof because the tenants would not stop complaining. If he just simply terminated the lease early, he would of only had to spend a fraction of that. The current tenants don’t even notice the slight leak in the roof.

  2. fivethirty79 on Thu, 30th Jul 2009 12:49 pm

    3. its not a bad idea, assuming that he doesnt have to put that much money into the building in the beginning. i dont know what area its in and that could affect it as well. assuming that each 2br would make $900 a month and the 1br would make $700 a month, he is looking at $18,000 a month in rentals. $220,000 a year, before taxes and expenses. thats 18.5% annual return on his 1.2m invested, which is better than a lot of investments. he could also have someone manage the property for him and instead of paying the person a weekly salary, he can just give them free rent.

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