Buying an apartment building, like flying a Boeing 747, or juggling, or playing the piano, in principle is easy.
However, like flying, juggling or playing the piano, it takes a few years to learn, and many more years to master !
It is a skill and time intensive activity !
Buying a building is not that simple (i.e. price/door or CAP rate) as it may look as many, often very time-intensive factors have to be considered such as:
a) CAP rate
c) what is behind the door i.e. condition of suite
d) what is in front of door, i.e. condition of common areas
e) rents today
f) immediate rental upside
g) long term rental upside
h) balconies ?
i) suite size or price per sq ft
j) views ?
k) macro-location, i.e. future of city/town
l) micro-location i.e. suburb or local area pluses and minuses
m) condition of major elements like roof, boiler, windows, balconies
n) interest rate on mortgages
o) cash per door i.e. cash-to-mortgage
p) availability of 1st and 2nd mortgage money
q) condo conversion abilities / potential
r) who pays utilities
s) potential future tax increases or decreases
t) ability to lower operating expenses
u) curb appeal
v) “feel” of suite / attractiveness
w) competition from new construction
x) competition from existing buildings
z) new jobs coming (or leaving)
.. maybe I forgot 3 or 6 more ..
one of these elements overlooked .. and there goes $100,000 or $1M in potential profits !!
Yes, you can do it yourself, and many have, or you can join with experts !