BreakThru Realty

Guide

Buying an Apartment Building in Florida

An apartment building is valued on the income its leases produce after the costs of running it. Verify the rent roll against the leases and the bank deposits, underwrite the insurance and the property taxes you will pay, and inspect the roofs, plumbing and electrical that decide your capital budget.

Ask a Commercial Specialist · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Rent Roll and Leases

Compare the rent roll with every lease and with twelve months of deposits. Look for concessions, units rented to employees or relatives, month to month tenants, delinquencies and units listed as occupied that are not. Rents below market are an opportunity; rents above market are a risk.

Operating Statements

Ask for at least two years of operating statements and the trailing twelve months. Check utilities, repairs, management, payroll and turnover costs. A seller's statement often leaves out management and reserves; add them.

Insurance and Property Taxes

Insurance is a large and rising cost on Florida apartment buildings; get quotes before your due diligence ends. Property taxes on non homestead property are reassessed after a sale, so underwrite the taxes on your purchase price, not the seller's bill.

Condition and Capital Needs

Inspect roofs, plumbing and electrical systems, windows, balconies and stairs, and the parking. Older buildings may have materials that insurers or lenders question. Price the capital items due in the next years and walk every unit.

Tenants and the Law

Residential tenants are protected by Florida's landlord and tenant law: deposits, notices and evictions follow its rules, and existing leases continue after the sale. Request tenant estoppels for larger buildings and the security deposit ledger.

Financing

Buildings of five or more units are financed as commercial loans sized to the income; agency, bank and private lenders each have their own terms. Consult a lender early, and keep the financing contingency long enough for the appraisal and underwriting.

See the Listings

Ask a Commercial Specialist

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Selling an Apartment Building?

Multifamily buyers underwrite the rent roll, the occupancy, the expenses, the insurance and the capital needs, and many tell BreakThru Realty the size and location they are buying. If you own an apartment building, a broker can check it against those requirements before you list and prepare the operating history buyers and their lenders will ask for.

Before you list, a broker reviews what you own, the market around it and whether an existing buyer's requirements match. If none does, you see how we would position it to reach other qualified buyers.

Find Out If We Have Your Buyer · Discuss Selling With BreakThru Realty

A potential match is a conversation, not an offer, until the buyer sees your property and makes one. No buyer is named and nothing about your property or business is shared until you decide to proceed.

Frequently Asked Questions

What is a rent roll?
A list of every unit with its tenant, rent, lease dates, deposit and balance owed. Verify it against the leases and the bank deposits before you rely on it.
Will my property taxes go up after I buy an apartment building in Florida?
Usually, because non homestead property is reassessed after a sale. Underwrite the taxes at your purchase price.
How many units make an apartment building commercial?
Lenders generally treat five or more units as commercial multifamily; two to four units can be financed with residential loans.

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