Make big profit

2 Responses to “What is a ballpark per-unit profit on a 50-100 unit apartment building in Southern California?”

1. Elizabeth99, on June 26th, 2010 at 8:24 pm Said:

   The variance you pointed out is primarily driven by the purchase price (mortgage amount and terms) on the property. A lot of property owners may be losing money month to month (for instance, if the building goes into a high level of repairs), then receive positive net income when rents go up through increased demand in the area, etc. The selling price of the building is based on the income to be generated as well as the asset of the real estate, so the seller is going to try to make that as close to break even as he can.

2. ♥2eat_poo-C, on June 29th, 2010 at 3:44 pm Said:

   LIke the gal says above, a lot of variables, and I’d like to throw in the economic area location of the apartment. If you cater to mostly blue-collar working class, you’ll have security issues of vandalism, burglary, etc.., where your overhead may increase because you need to hire a security guard to patrol the area. I use to be a security guard, and some of my post assignments were apartment complex. They called for security guard service because the crime and vandalism was compelling some of the reliable (good $$ earning) tenants to move out. When you have good reliable tenants move out, they’re not easy to replace. Most people looking for an apartment (in city areas) often have bad credit, past history of eviction, and drug possession or drug sale arrest convictions. You let a tenant with drug history into your complex, the place slowly gets taken over by drug dealers and drug users, coming over to visit and loiter on the property.

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