Apartment Investing: Is it worth it?
Updated: May 22
The simplicity of apartment living has made it a popular choice, especially for city dwellers.
Renters enjoy setting up homes in key locations and enjoying perks like amenities and community activities without taking on the full responsibility of owning the property. Many also prefer the financial freedom that apartments give them: By putting in small monthly leases instead of bigger home payments, they can put their budget towards travel, education, and other priorities.
All these make apartments a viable investment.
In recent years, cities like Houston, Texas, have seen strong demand for rental properties. More and more investors see apartments as a great addition to portfolios to hedge inflation, combat the effects of a slow economy, and introduce more stability to their investment mix.
Yet, plenty more are intimated by the work that goes into tenant and property management. They ask: Is apartment investing worth it? Continue reading below to help you decide.
What is Apartment Investing?
Apartment investing refers to purchasing, managing, and renting residential properties (specifically apartments) for profit. An example is multifamily properties, where you can invest in multiple units within a building or complex.
Yes, if you want Stability.
Apartment investing is an excellent option for investors looking for cash flow. Every month, you can expect income from rental payments on top of other variable income like parking, vending machines, and dividends.
With the proper management of your investment, you can keep occupancy rates high and grow your income stream over time.
Yes, if you want to invest for the long term.
It is worth noting that investing in real estate does require a significant sum of money. This goes into building or buying the property and ensuring your apartments remain in good condition. Nonetheless, multifamily investors appreciate receiving periodic dividends before receiving their ultimate prize: their return on equity (the total cash return for investment).
The Question You Should Ask Before investing your hard-earned money in real estate, you should be clear with your goals. Ask: What do I want to achieve with this investment? Do you want to add new streams of income? Do you have a specific number or object you’re working towards? Do you want to build wealth and see real estate as the pathway to your goals?
Coming into an investment with a clear answer will help you see which investment (and strategy!) suits you. At Makaan Investment Group, we help our partner investors achieve their goals, from diversifying their portfolios and exploring real estate’s tax advantages to growing their capital and building wealth. Speak to us today to see if investing in rental home properties in Houston, Texas, is right for you.
Reach us through this page or call/text us at 281-500-8554.