Build an investment property, despite a 1 1/2-story development plan

The return expectations are around 5 to 6 percent. [...]

A sale is of course fundamentally also an option, but since there is a certain "emotional attachment" to the property, only the last resort...

Emotional attachment costs money.

The development must be suitable for a rental property, i.e., the building window must be correspondingly large, and possibly commercial use should be allowed. Otherwise, observe the land market in the area and sell when the appropriate buyer is found.

I also don't believe that renting out is even an option for you, at best with property management (which will cost part of the return), since you only have this one property (speculation?) and also do not live on site. Think about how often you will travel to the construction site during the building phase and what it will cost you to find tenants, handle billing, and occasionally manage the property.

Best regards
Dirk Grafe

If he is aiming for a pure rental property, I would fully focus on multiple apartments. If one apartment has rental losses, it’s not immediately 50% lost.

But please complete the line of thought. Many tenants increase the risk of:

[*]stress, disputes, trouble among each other or with the landlord/management
[*]moving in and out (do you know what a stairwell in a rental property looks like after moving in and out)
[*]more management and possibly also costs
[*]more parking spaces = more costs
[*]more storage rooms and waste bins

The list is certainly not complete. (One cow goes moo, many cows make work) :D

That is certainly true as well. Btw, I also believe that there are better investment opportunities than real estate. They are usually only interesting when corresponding bases are established, like at Bendey. He now has to start calculating and finally weigh whether it is worth it or not.

I say it can be worth it.

Among other things, I would also pass all costs on to the tenants, and how the stairwell looks after a move-in or move-out does not necessarily matter, since only "tenants" live there anyway :)

Meaning, if you plan such a project as an investment, you must also act accordingly, otherwise the cost/benefit factor becomes too poor.

I would, among other things, also pass all costs on to the tenants, and how the stairwell looks after a move-in or move-out does not necessarily matter, since "only tenants" live there anyway :)

That means, if you plan such a project as an investment, you have to act accordingly; otherwise, the cost/benefit factor becomes too bad.

Not all costs are transferable, some remain with the owner. Sure, if you do nothing, after 5 move-outs potential interested parties will stay away, because the first impression when entering the building is 4-5.

5 extracts are certainly more than 15 years, or with how many years of tenancy is this usually calculated? Whether allocable or not, the costs that I incur I would always include in the rent.

5 withdrawals are surely more than 15 years or with how many years of tenancy is it calculated?

This is not up for discussion here in the thread.
It originally concerned the approach:

Few large apartments <> Many small apartments

Chargeable or not, I would always include the costs incurred in the rent.

You can try. :cool: