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Central lllinois | We built several 6 unit single story apartments 15 years ago in a farming community of 5000 people. Tenants are retired people who don't want to worry about upkeep of a property any more;we mow and remove snow. 900 sq ft, two bedroom size isn't usually big enough for couples with kids. Even single retirees want 2 bedrooms and attached garage. Single story b/c retired people don't want stairs. Not 2 stories b/c you'll get young people upstairs making so much noise that the old people will move out. No pets; stick to your guns. Tenants pay on time every time. We provided most of the labor to build them and manage them too. Tenants treat us like neighbors. The older generation take care of things just like they would if they owned it themselves.
This strategy has worked out great for us. Often have a waiting list.
$3200 total rent from the 6 units/month. Taxes and insurance run about $700/month= $2500/month but we pay maintenance expenses out of that. 15% return on investment (building and land costs) | |
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Multi family housing
