Posted by Bud Branstetter on January 26, 2000 at 11:11:33:
If you look at it from a per unit price you have $1200/per to buy into a 50 unit complex. If per unit cost are 20 to 30K then you need more cash. You could consider doing 1031 exchanges on the rental property to generate more down. You can also look for owner financed units.
You do need to become an expert in apt complexes. what cap rates they are running, what deferred maintenance they have and what the income really is. If the cap rate is 12 then you want to buy at 16.
The other approach is the salary deduction-401Ks and Roth IRA’s. Learn how to buy and build up those profits into the Roth so there are no taxes on that rental income. You can also buy discounted mortgages or do some hard money lending. The idea is to make your money work for you with the least amount of your time. Next time you’re in the Dallas area I’ll give you and hour or two of ideas to reduce taxes and increase non taxable income.