Current, not projected, rents count

      DEAR BOB: I am considering investing in income property, such as apartments. I've responded to several newspaper classified ads for apartment buildings advertised for sale. But it seems the brokers have priced the buildings based on projected rents, rather than actual current rents. Is this the way to buy apartments? -- Kathryn L.
      DEAR KATHRYN: No. Always buy income property based on the current income. To obtain those projected rents, you will probably need to renovate the apartments. Current tenants usually will move out if the rent is raised more than a minimal amount and tenant turnover is expensive for the landlord.
      Smart investors realize that raising rents by improving the property usually requires renovation If you are going to do all that expensive work, you, not the seller, deserve to benefit. When a building doesn't make financial sense based on its current income, don't buy. -- Send your questions to Robert J. Bruss, Tribune Media Services, 435 N. Michigan Ave., Suite 1400, Chicago, Ill. 60611.