Why I Switched
To Apartment Real Estate Investing
Making the switch to apartment real estate investing from single family
homes changed my life. And thankfully, that change was for the better.
Especially when it came to my monthly passive
In fact, I went from earning nothing from my real estate business, to
earning well over $5,000 per month (it varied from month to month) from
my first apartment building investment.
So if you haven't guessed yet why I switched to apartment real estate
investing, it was CASH FLOW,
pure and simple. I needed it, and apartment investing provided it.
see, my first forays into the real estate investment game were focused
on single family homes. The investment objective was to hold the
properties long term, and with any luck, eventually sell them for a
profit. The "problem" was, that
plan did not provide any monthly cash flow. And I learned quickly that
"future profits" didn't pay "today's bills".
Lest I leave you with the impression that you cannot succeed in real
estate investing using the buy and hold strategy, I want to make it
that you can. In fact, in the past few months alone I sold off two of
my original real estate investments (both single family homes), both
for a profit. My partner and I had held the properties for over ten
years and earned a profit of $150,000 (split down the middle) from the
sales. But even though those properties were profitable in the
long run, they did not, in general, generate any positive cash flow
over the years that we held them.
Unlike apartment real estate
investing, generating positive cash flow from a single family home
investment is very difficult to do if you use any significant leverage
(ie. debt) to purchase the property. Most folks who invest in single
homes shoot for "break-even" cash flow (after making the debt payments
and paying expenses)
and plan on profiting from appreciation in the future.
Apartment real estate
investing on the other hand holds great potential for generating
positive cash flow. When purchased properly, apartment buildings can
passive income for their owners, even when they are highly
The key word above, in case you missed it, is passive.
I have been investing in apartment buildings for over 15 years now, and
every month I earn a passive income from those investments. In other
words, I do not "work" for that money. It simply arrives in my bank
account from my property managers whether I am in my office or on
that is a real business!
"real business" is one that runs on its own without any hands on
involvement from the owner(s), and still generates a profit. Based on
that definition, apartment properties make great "businesses".
convinced? Here is just one example
of an apartment building I own that
is 100% financed, and generates over $3,000/month in passive income for
me. (And this figure will jump to over $5,000 once I refinance it in a
Return from Apartment Real Estate Investing to Residential Real Estate Investment
from Apartment Real Estate Investing
to Apartment Building Real Estate
Investment For The Rest Of Us home page