THE FIRST INSTALLMENT OF A LESSON ON APARTMENT BUILDINGS...

A way to Survive!!!
Why Apartment Buildings should be in your financial plan!!!

The interest rates are going up and the value of real estate will be going into a valley soon. It happened before and we survived it and it will happen again. I am 72 years old and I’ve seen it before and, GOD willing, I’ll see it again. But there is one way to get through it. You can’t panic when it happens, you have to start planning NOW!!!

If you bought a single-family home as an investment when the market was favorable than you have a nice asset today. But what happens if we go into a recession and your tenant loses his job. If you have one house and it is empty, you have a 100% vacancy. That’s not good.

And, while all this is going on the stock market is taking a dive and your net worth is going down the toilet. Dividends that you used to rely on to live and eat may be gone because your investments are not doing good and they can’t afford to declare and pay a dividend.

The way to make it through a recession or a fall in real state prices is not to panic and own a multifamily dwelling. But assuming that you do not now own real estate you have to start out like this. If you have some capital then purchase as many single-family homes as you can first. Leverage your investments because putting a lot down on one house is wrong but putting something down on three homes makes more sense.

Like I said before if you own one investment home and it is empty then you have a 100% vacancy factor and instead of making money you are losing money every month. But if you have three single-family homes then if one house is vacant than your vacancy factor is thirty-three percent and the two remaining rented units will pay for the one vacancy. Don’t put all your eggs in one basket!!!