Apartment Stock 2

Apartment Stock 2

The type of commercial real estate that will be discussed from this point forward is apartment buildings. Independent investors who chose to invest in apartment buildings have the chance to benefit greatly from the cost of inflation because of any factors. As we have discussed, in this time of economic instability, the cost of everyday living goes up, this includes rent. Net Operating Income is a common valuation method. This means that even if the economy is not doing well, the owner of the apartment building can still prosper because the rent of the units will increase. When rent goes up, this generates more money for the owner which can be used to help off-set the rising costs of operation and the overall value of the apartment building.

Apartment Stock 2