Apartment buildings for sale in Winston Salem can be a solid investment. The investment market for multifamily buildings in the area is always solid. Investors have different models that work for their strategy. In some cases there are investors who would like to liquidate their portfolio of single-family homes and re-invest into a large multifamily building. In other cases the investor is a habitual investor in larger projects and are always looking for apartment buildings for sale in Winston Salem.
In Winston Salem if you are buying investment property then your options are currently pretty solid. This market has a solid rental market. Other areas of the state are building new buildings and flooding the market with new multifamily units (Charlotte has over 10,000 units being built). In the Winston Salem area I would recommend considering buying an existing building and renovating. This can produce income quicker and if you can negotiate a good purchase price it can produce equity quickly.
If you are considering a purchase of an apartment building in Winston Salem then you have many factors to consider:
- Location, location, location. Always research and know the local area before you purchase
- Buy, build, or renovate. Do you want to build a new building, buy an existing building, or buy another building and renovate it into multifamily use?
- Upside. What is the potential for improvements and gain equity in addition to the rental income?
- Rental rates. What can be done to increase rental rates or are they maxed out?
The purchase of an apartment building can be a great income investment. The steady monthly and long-term income can be very attractive. Likewise, equity over time is a wonderful gain. However, keep in mind that there are large expenses that come with a larger building. The most common repair items an owner of a Winston Salem area multifamily building should anticipate are:
- Water heaters (new codes have increased this cost significantly)
- Heat and Air Conditioning units. These can range from wall units like a hotel room or traditional heat pumps or in some gases gas furnaces.
- Plumbing. Is it updated or are old cast iron pipes in use that will clog and need replacement?
- Electrical. Is the building on fuses or breakers? If you are upgrading air conditioning units you have to make sure the electrical can accommodate the swap.
- The roof. This is one of the best things about a multifamily building there is only one roof. However, it is usually a large roof and large expense.
If you are in the market for an apartment building or other multifamily building in the Winston Salem area then feel free to contact The Carolina Crew, Inc. Our services include property management and commercial so we can help you review rent rolls on a potential purchase and help you buy a great investment.