buying multifamily apartments – Advantages of Purchasing a Multi-Family Home

Tuesday, June 29th, 2010 at 4:00 am

Know How To Make Money From Apartment Investing...

Real estate is the wave of the future, and every day men and women all over the country are enjoying the benefits that it can bring. Only with real estate can you turn virtually nothing into something great, allowing yourself to rise from the depths of poverty to the top of the food chain in less time than it takes the average person to pay off their car payment.

What is the secret of making money in real estate? There are a few little tricks that everyone should know in order to make their fortune investing in real estate. First and foremost, you've got to buy the property at as low a price as possible. That stands to logic; after all, you would want to buy your car or your groceries for as little money down as possible, why wouldn't you apply that same policy to your investment properties?

The trick to purchasing a property at a low price is to find one that needs some rehabilitation work done on it and undertake the repairs yourself. As the property needs work it is not going to sell for its maximum market value, and you can use that to your advantage. "Buy low and sell high" is the battle cry of every real estate investor.

Once you have finished your rehabilitation, however, you are now in the position of having to make a choice. What are you going to do with your recently rehabilitated property? There are really only two options available to you as an investor. You can either choose to resell the property, a process known as flipping, and buy another or you can choose to rent the property out and enjoy the residual income you are going to have coming in.

Multi-family homes are going to bring you the greatest amount of passive income possible because the tenants you are going to have are going to consistently be paying their rent, and they are going to do so long after the mortgage on the property is paid off. If you choose to flip a property you may be able to enjoy ten or fifteen thousand dollars in accumulated equity; however, that is all you are going to get. By choosing to rent a multi-family home you are going to have the rent checks coming in month after month. These rent checks are going to pay your mortgage for you, and once the building has been paid off will more or less be sheer profit for you to do with as you will.

This extra money can add up to hundreds of thousands of dollars in passive income a year, particularly if you take advantage of the opportunity and purchase multiple multi-family properties. Multi-family homes are the key to success in the real estate business, marking the line between the sharks and the guppies.

David Lindahl, also known as the "Apartment King" has been successfully investing in single-family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine

Article Source:

http://EzineArticles.com/?expert=Dave_Lindahl