Multifamily Investment Property Growing Strong

The market for multifamily and investment properties is still going strong, particularly in the Tampa, Fla. market.

Image courtesy of IMT Tuscany Bay

According to the Tampa Bay Business Journal, IMT Capital of Sherman Oaks, Calif. bought two apartment complexes in the northwestern portion of Hillsborough Co. including the Preserve at Westchase Apartments and Tuscany Bay Apartments.  Records indicate that both properties were purchased from Archon Group in Dallas, Texas for a combined $78.2 million.

More recently, the Carroll Organization – based in Atlanta, GA and headed by M. Patrick Carroll – purchased the West Park Village apartment complex in the Westchase area.  The deal included 617 luxury apartment units for a record $122.5 million.

Although some indicators in recent weeks have shown an increase in the number of homeowners throughout the country, the market for rental, multifamily, and investment properties is a strong as ever as this deal indicates.

For property investors, the importance of maintaining a portfolio with income property in good condition and good locations cannot be overstated. Not only do these income properties provide a bump in personal or corporate assets, they provide much needed cash flow.

A Real Estate Improvement Company

The real estate industry has many unique facets and players. But no matter what role you play or how what you do in the real estate market, there is one important goal that everyone should keep in mind.

When you consider real estate, you should consider it as an investment. And when you think of the criteria involved in making a good real estate investment, you must examine and analyze the utility and the value of such an investment.

Another way to look at utility is to look at usage. Is a particular property being used to its highest and best usage in accordance with all local laws and statues? In other words, can I put four different townhouses on this large residential lot on a busy street and receive more income in rent than I would be able to charge if I only had a single-family home on this property?

When we talk about value, we think of cost and we think of price. Can you sell a particular property for a price more than the purchase cost? If so, your property has positive value. If not, you property has decreased in value.

The goal of a real estate improvement company is to maximize both the utility and value of a property. We can do this through investing, managing, developing, and marketing a particular property.

To take our previously stated example of the townhouses, we will take a look at the utility and the value. With regards to utility, we have certainly increased - or improved - its utility. We now house four different families, versus just one previously. When looking at the value, we have increased the net operating income of a property thereby increase its value.

But just how much did we increase the utility and the value? This is where a real estate improvement company will come in hand to determine just how much utility and value this project provided versus other similar (or different) projects.

When looking at a piece of property, think about what the best usage of that property could be. Then, think about if that type of project is feasible on that property. If you have mastered those concepts and kept those goals, you have yourself a real estate improvement company.