Investor multifamily property listings for sale in South Carolina. View SC apartment communities & complexes for sale by price, town, city, major market, cap rate, list date, region, days on market, and more. Search for all investment property portfolio commercial multifamily housing for sale in SC here. View multi-family properties for sale in Charleston, Columbia, Greenville, Myrtle Beach, and all the surrounding communities & neighborhoods. This page includes entire apartment neighborhoods for sale in South Carolina, as well as duplex, triplex, quadplex units, and mobile home parks.
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Important Info for investing in apartment buildings
More income quicker
Multifamily properties have many rental units that produce more cash flow at a faster rate than a single rental unit. Rather than having to buy several single-family rentals over time, you can make more cash flow with the purchase of just one building.
With a multi-unit investment like an apartment building, there are multiple rental units that can be used to offset a loss in rents from vacancy. If 20% of the units are vacant, 80% are still producing income which allows you to cover costs like debt service, property taxes, or other related property expenses.
Economy of scale
The economy of scale is spreading fixed costs over an increased number of units. Property expenses and holding costs relating to an apartment building are typically far less than a portfolio of single-family rental properties because there are multiple units under one roof.
Property taxes, insurance, and management fees are generally fixed and the cost to replace the HVAC of a single-family home or a small apartment building that has six units under one roof is relatively the same. As the number of rental units increases, income is increased while reducing your cost, making it more cost-effective than multiple single-family rentals.
To value a one-to-four unit residential building, we will use the Comparable Sales Approach which means property’s value will fluctuate by comparing to the sales price your neighbors received from selling their property. However, five-plus-unit residential buildings are being valued by using Income Approach which means the property’s value relies on the net operating income (NOI) and Cap Rates the building is bringing in.
Negatives of investing in apartment buildings:
The largest barrier to entry into investing in apartment buildings is affordability. Multifamily properties can be expensive and require much more initial capital to get started. Investors should expect to have around 20% of the purchase price. There are opportunities to raise capital using multiple resources. Hence why new real estate investors will begin with single-family properties first.
Managing an apartment building can fall under both pro and con, similar to managing a single-family rental. On one side, you’re managing all of the tenants in one location, typically under one roof. You don’t have to drive all over town. However, there are more tenants and units to maintain and manage, meaning more responsibility, organization, and in general more potential problems. Finding a good and robust management software can help considerably for a well-organized system.