/biz/ - Business & Finance

[Anonymous No.23163660]

Is owning an apartment building the final redpill?

[Anonymous No.23163698]

>>23163660
Imagine the drama that comes along with owning that gigantic, ugly hunk of shit

Take your $10,500,000 and get passive crypto gains

[Anonymous No.23163724]

People shouldn't be allowed to have control over apartment buildings for profit. Responsibility should be given to public figures who are accountable.

[Anonymous No.23163732]

>>23163698
I can't imagine having 10mil and spending it on a low return headache like an apartment building. Buy 1 mil of 10 shitcoins and enjoy your 100mil in a few years

[Anonymous No.23163746]

>>23163724
Imagine if instead of 1 Rich Jew profiting off an apartment building, instead 5-10 government officers made profit off the building and kept tenants happy as a TEAM.

[Anonymous No.23163760]

>>23163724
Let me guess, Biden 2020?

[Anonymous No.23163770]

Assuming $2,000 a month rent that's $38,000 a month at maximum occupancy - now take out taxes, repairs, fees, maintenance, compliance... MAYBE $20,000 in your pocket a month. So $240,000 a year. That's 40 YEARS to pay itself off. Any stock paying 2.5% divvies would be a better investment, and stocks typically appreciate vs a rotting building

[Anonymous No.23163804]

>>23163660
It's a scam unless you have $1M+ in disposable income earning you at least $4k monthly.

I'll probs just stick to playing Badger Finance when it goes live.

[Anonymous No.23163808]

>>23163724
>politicians
>accountable

I guess that is the signal for me to go to bed now. Night anon.

[Anonymous No.23163820]

>>23163660
If it's such a good deal why the fuck are they selling it?

[Anonymous No.23163866]

>>23163760
Fuck you Commie Sanders all the way

[Anonymous No.23163889]

>>23163698
>drama

you pay a property management company to deal with it

>>23163732
based

>>23163770
so it establishes generational wealth

>>23163820
based

[Anonymous No.23164107]

>>23163770
Its called parking money. If you have multi millions to even afford the deposit for this thing you cant put it all in the same place. You'd have some in stocks, some in metals, some in bank accounts, maybe some business investments and of course in property.

Because of the high value and relatively comfortable return property like this is an attractive place to store wealth. Plus the fact they will never get $10m for this and it is over valued based on that return.

[Anonymous No.23164161]

>>23164107
On the other hand if you costed it all properly and had maybe $3-5m in the bank you could buy this live in one apartment and make your home an asset rather than a liability because its actually making you money rather than losing it.

[Anonymous No.23164199]

damn dude. didnt expect to see my home town on 4chan.

[Anonymous No.23164216]

>>23163724
Holy shit, it's like you've never heard of section 8 housing. Go kill yourself, faggot.

[Anonymous No.23164244]

Fuck Arlington, I hate living here. Every decent house for sale is 700k+

[Anonymous No.23164274]

>>23163724
>This is who gives you financial advice on this board

[Anonymous No.23164341]

>>23163660
No real estate development is. Then surround your people with your own malls and grocery stores and collect rent on businesses. Then collect cash flow on always increasing hoa fees while fucking your investors/buyers with delayed projects and depreciating building value, and not enforcing maintenance, so it turns into a ghetto but always increase fines and fees.

[Anonymous No.23164398]

>>23163724
>Responsibility should be given to public figures who are accountable.
So no one...? Kys bootlicking faggot

[Anonymous No.23164404]

>>23163660
And then you get fucked by all the laws that prevent you from evicting shitheads.
Right now you can't evict anyone in the US for any reason.
Have fun with the debt.

[Anonymous No.23164432]

And then you get this fucker here telling everyone his projects are going to be done in a couple years. A couple years go by and there’s nothing but a fucking hole in the ground. But the projects he does get done he’s the first to put his McDonald’s in. Fucking slimy scumbags. These fuckers are going to pay dearly. I’m gonna puss down their throats.

[Anonymous No.23164468]

>>23164341
>>23164432
>completing about this one family of gooks who are 1% of the problem rather than the jews who are 95% of the problem

[Anonymous No.23164474]

you guys forgot the property tax this fucking thing will be too in estimation. Probably cheaper buying duplexes

[Anonymous No.23164492]

>>23163724
Based. Landlords should be sold into slavery.

[Anonymous No.23164563]

>>23163698
Sticking that 10m on Curve.fi would probably get better returns, and I can always withdraw that money at any time

[Anonymous No.23164634]

>>23164468
Stfu faggot. Go cry about da Jews while you sick your own kike dick.

[Anonymous No.23164791]

I own five apartment buildings (triplexes) in Arlington, 15 total apartments. They rent for $2,800/mo but usually a couple are empty at any given time. One was just freed up last week and just had new carpets put in, fresh paint, etc. If anyone is looking for a 2b/2ba apartment in Arlington lmk, I'll give you a /biz/ discount

[Anonymous No.23165051]

>>23164791
Is it comfy? What is the net after all the bullshit? Do you use a management company?

[Anonymous No.23165101]

If I had $10.5 mil, I'd just park most of it in SPY/VOO and cruise on my average $1MM per year.

[Anonymous No.23165212]

>>23163660
The real money is in being a slum lord.

[Anonymous No.23165226]

>>23165051
net is about 350k/yr more or less. I have one part time employee who is pretty handy - he takes the bins to the curb, mows the lawns, fixes minor things, runs random errands, does the showings. Over the years I have developed a good relationship with reliable contractors for everything which really helps. Carpets go in for 1k, new roofs are 6k and done every 10 years, water heaters are pretty buggy and need to be replaced every once in awhile. Overall it's too chill to need a management company for just 5 buildings

[Anonymous No.23165234]

>>23164563
And if curve goes bankrupt you can kiss your 10mil bye bye

[Anonymous No.23165250]

>>23163660
It's all about the DCF. As long as you're cash flowing within your parameters above interest and principle, in an area you presume to have considerable growth, you know when to sell, etc., it may not be a bad investment.

However, with population growth stagnating, the assumed probability of property values going down within the next 8 years, and a number of other factors, you may very well be off just investing or starting some company or a number of companies.

The thing is, your risk (the principle amount) is a lot, and if you're not making much above the principle/interest payments, operating costs, etc., and you don't summate and prioritize the proper risk factors, you could be looking at a 20-25% market value loss on the property, which comes out to a $2,625,000 loss.

The cap rate is the net operating cash flow. So assuming it's yearly, that gives us a SUPPOSED (yes they may very well pump these numbers and do it legally) $10,500,000*0.04=$420,000 per year.

All that, for only a 4% gain, and on what I believe to be a rocky and shifty housing market at best at this point in time. I'm talking maintenance contractors, office staff, yadda yadda yadda. All for a 4% market cap? What?

If you do lose that 25% market value of $2,625,000, and rents stay the same, that means your break even would be at least 6.25 years of time (meaning cash flow that offsets market value loss). It may go up, it may go down, but that's quite a considerable risk.

Some preferred shares of BAC yield like 5+%, think about it...

[Anonymous No.23165267]

>>23163770
I live in dc, if it's a true one bedroom, it's 2-3k a month

[Anonymous No.23165281]

The renter redpill is to always rent from some retired boomer who only owns a couple properties.

The landlord redpill is to ditch the building and invest in Funko Pops!, which will only increase in value.

[Anonymous No.23165376]

>>23163732
>Buy 1 mil of 10 shitcoins and enjoy your $378.12 in a few years
ftfy

[Anonymous No.23165387]

>>23163660
4% cap fuck off lol

[Anonymous No.23165390]

>>23165376
Won't the alarm go off

[Anonymous No.23165413]

>>23163820
loan terms for apartment buildings are typically 5-10 years, so the owner likely needs to either sell or refi soon. Also, if you look up apartment building syndicator strategies they typically target 3-7 year hold periods because any longer and it is hard to get investors willing to commit money for that long. Apartment buildings change hands very frequently for these two reasons

[Anonymous No.23165433]

>>23163770
they tell you the cap rate right there, you don't need to make any assumptions. It's a 4% cap rate which means at current cash flow it would take 25 years to pay itself off. Yes it's terrible

[Anonymous No.23165440]

>>23163660
4% cap rate is utter and complete shit for what a pain in the ass this would be btw. I wouldn't touch it for less than 20%. t. re fag

[Anonymous No.23165469]

>>23165440
based, yes cap rates in the D.C. area are retarded. People are buying these things just praying for rent increases and appreciation. At a 4% cap literally just park all of your money in a REIT and you would be much better off

[Anonymous No.23165544]

>>23165226
that's dope dude. How much did the buildings cost? I invest in townhomes in the Baltimore suburbs, rent/value ratios are insane up here. Seems hard to find the kind of cash flow you did in DC/Arlington

[Anonymous No.23165557]

$10,000,000.00

19 Units @ $1000 a month

= $19,000 a month

x 12

$228,000 a year

10 years

$2,228,000

20 years

$4.5 million

40 years

9 million.

Conclusion, if you purchase this, you're an imbecile. The only legitimate acquisition of such a place is by force and blackmailing the person selling it and getting it for free. Actually paying I KNOW WHAT I GOT prices, simply isn't worth it.

[Anonymous No.23165618]

>>23165557
lol at the financial detectives in this thread calculating the income on the building... it literally tells you right in the advert it is a 4% cap rate. So annual net income is $420,000. Yes it's bad cash flow

[Anonymous No.23165721]

>>23163660
Gross inflow would be ~320k/yr assuming you can keep all 19 units rented to reliable tenants for 11 out of 12 months; assume you pay 60k/yr in repairs plus 50k for actual property management and you only get 2% roi and have to hold a big shitty RE asset that could tank in value if too many nogs move into the neighborhood. would unironically be better indexing it.