Investing in multi-dwelling buildings is a way to not only build your portfolio, but to ensure constant cash flow from those who rent out the units. In this episode, I talk to my good friend Karl Brady about investing in apartment buildings who teaches us the best way to use them to better your portfolio and get a great return on your investment.
Karl is a very busy man, working not only at Greybrook, but is the president of Greyspring, which is a collaboration project between Greybrook and Marlin Spring to invest in apartments and add value to them in addition to giving families across Canada homes they will love and thriive in.
Karl talks about his strategy regarding buying apartment buildings as investments. The strategy involves buying under-managed buildings and adding value to the units that have been particularly under-managed, as well as the common areas, adding magic to the cap rate.
The case study that Karl brought in for the show was a building of 150 units, which is what he calls the sweet spot of the number of units they would look for in a building they would invest in. This could be one building, or a cluster of buildings that make up the 150 units.
Going through his investment strategy, Karl details what they would typically spend to renovate each unit and following that, what they would increase the rent of each unit to be. Looking at the numbers, and the rent increase for one unit, you can see what the increase value will be on just one unit, then multiply that by 150 and you will see the value and cap rate from this property brings in consistent cash flow and will boost your portfolio.
To see the incredible cash flow that this building would bring in, please check out the video.
For more information on Karl and Greyspring, go to www.Greyspring.com.