You are likely to attract more tenants and earn a larger income stream when you purchase an apartment building in a place where people want to live. In Texas, Houston is a popular destination due to the booming economy and relatively low cost of living. Therefore, a Houston Tx apartment building could be a very profitable venture. Also, consider the neighborhood where the building is located within the city.
Apartment buildings are classified according to their location, age, condition, and amenities. They are then ranked according to a scale that designates the levels with the letters A through D. Buildings at the middle levels, B and C, are usually 20 to 30 years old. Amenities may be dated or nonexistent. Some repair or renovation may be required. These are often attractive choices for individual investors due to the price.
The more units your building has, the more income you stand to earn. However, an apartment building with fewer units will take less of your time to manage. Therefore, the number of units you desire depends on your individual goals. If you want to make a full-time commitment, you may want a building with many units. Fewer units are better if you only want to supplement your income or secure retirement income.
On your own, it may be difficult to find a Texas apartment building to buy. Consulting a real estate agent with experience in multi-unit properties may be very helpful. Once you find a building to purchase, you will need to obtain financing through a lender. The good news is that it is the earning potential of the building, more than your personal finances, that determines your mortgage loan eligibility.