Apartment buildings can be a good financial investment and a dependable source of regular profit. However, if you're interested in owning this kind of commercial building, you've got to focus on a few things to be sure that the building you choose is appropriate for your personal monetary goals. With the following pointers, you can get a property that will work out well for you.
Have a Commercial Building Inspection
It is vital that you have a building inspector do a walk-through of the building with you. While the seller is likely to share some things that need to be repaired, it is beneficial to have an objective professional look at the roof, HVAC system, and other things in the building to ensure that nothing is missed. That way, you can get an idea of how much money you'll need to set aside for repairs and improvements.
An inspector can also watch for compliance with fire codes and other local guidelines. The building may have been built before some of these ordinances were in place, but as the future owner, you could find yourself responsible for fines and fees if you don't bring the building up to code.
Look At Zoning Laws
To build more profit over the years, you may want to construct more apartments or make other changes to the existing apartments. However, depending on the zoning laws in place, you might not be able to. Talk with a zoning officer in the local town hall to find out what you'll be able to do with the building in the years to come.
Find Out Your Property Tax Burden
While there are sometimes homestead tax exemptions you can take advantage of for your personal home, investment properties are typically not eligible for those. You might be surprised to find out that your property taxes for the apartment building are much more than you expected. To eliminate this shock, talk with your realtor, accountant, and other property owners in the area so that you know what your tax burden could be for a particular building.
A vital action to take before you purchase any commercial building is to study the leases of all the tenants that currently occupy the building. You'll need this information to find out how many tenants are slated to stay after you purchase the property; you may need a marketing campaign in place if you'll need to attract a large number of new tenants after you buy the building.
When you use the advice here, you can make better choices about what kind of apartment building you buy. Ask your commercial realtor for more help with the process. For more information, contact local professionals like AccuPro Inspection Services.