Expert Answer

Lance Hood:               What kind of cash flow can one person expect from buying apartment buildings?

Anthony Chara:          Well, that’s a great question Lance, and it really depends on a couple of things. It depends of course the number or the size of the complex, and it also depends on whether the buyer is putting in their own money or if they’re bringing in what we call “private lenders” to help them fund it. But typically our students are getting somewhere between $1,000, to $2,000, to $5,000 a month in positive cash flow from their apartments.

Lance Hood:               That’s really nice. You know, people talk about single-family homes only getting $100.  That’s really not that much so do you recommend apartments over single-family homes.

Anthony Chara:          Well, yes and no. It really depends on your over all strategy. We like apartment buildings for the exact reason that you just brought up, that with single family homes you might get maybe $100, maybe $150 a month in positive cash flow if you buy in the right area. As we mentioned earlier with apartments buildings, you can get $1,000, to $2,000, to $5,000 a month in positive cash flow. But here’s what we do. We actually do have both of them in our portfolio, but we buy them for different reasons.

                                    We buy apartment buildings for the cash flow, and we buy single-family homes, in highly appreciating markets, for the appreciation. We use the cash flow that’s coming from the apartment buildings to offset the negative cash flow that we’re having on some of our single-family homes. So, we do actually recommend that you buy both of them, but you need to buy both of them in the right area and for the right strategies.

                                    I would not recommend going out and buying single family homes in a market where you are making $100 or $150 a month of positive cash flow simply because those particular markets don’t usually appreciate as fast as some of the other markets around the country. And by buying an apartment building that has great cash flow, you’re actually on your way to becoming wealthy, whereas buying single family homes in highly appreciating markets will actually make you rich. We show you that through some of our seminars and boot camps the difference between wealthy and rich, what that means, and how to accomplish both.