: Determine the size of the deal and the target market. Assemble a team including a commercial real estate broker , lender, property manager, and real estate attorney.
: Understand key metrics like Cash-on-Cash Return and the 1% Rule , which suggests monthly rent should be roughly 1% of the purchase price to ensure positive returns. buying your first apartment building
: This is the most critical phase. You must verify the rent roll , examine the T12 (trailing 12 months) financial statements, and conduct physical inspections of plumbing, roofing, and structural integrity. Key Investment Rules The 1% Rule : Monthly rent should ideally be of the purchase price. : Determine the size of the deal and the target market