There has been ongoing debate regarding the best way to recoup the investment made in constructing a residential apartment building. For those involved in real estate, where does the real profit lie? Is it possible to recoup the money spent on constructing a residential apartment building through renting it out, or is selling it a better option for recovering the investment?
Now let me just trying my best with my small experience then, let me start with renting; in Renting the profits minimal like it doesn't have a stable and sound profits, reason is that in rentage when you spent a total amount of 50M to construct a building after which placed it on rentage it could cost you a total of 20-30 years to cover the cost spent in that building depending on the amount fixed at annually / Quarterly (Monthly/yearly), maybe it could around 500k per apartment then multiple by total apartment in that building, let say 5 apartment... 500,000 x 5 equal to 2,500,000 per year, then we subject it to the total amount spent in constructing the building.. 50,000,000 / 2,500,000 = 20.
Meaning it would take you 20 years to recover the amount spent in constructing a building with 5 apartment, after which your profits continues and it's a lifetime investment, but this depending on your age. If you are already 50 year old when you have that building, before you recover the amount it could cost you a total of 70 years which you are already weak (50 age + 20 years). So the investment is for your children and not yours.
Now, selling a building, if you spent 50m in that build you may decides to sell it at 70m-100m meaning you made your profits instantly without having to wait for lifetime to recover your profits, and off course you can always construct another building to sell, maybe within 20 years of your life have succeeded making 30m x 20 =600m within 20 years.
In Summary selling a building is more profitable than rentage.
I don't know if this is actually what you mean or not