Multifamily Buyers
Multifamily Buildings Are Not Just For Investors
The fundamental difference between a traditional single family home (or condo, townhome, villa) and a multifamily building is that multifamily units generally produce income. But they also can be an excellent choice in lieu of an in-law apartment or a separate apartment for parent or child alike. Multifamily buildings...duplex, triplex or fourplex.....are multifamily homes too!
Multifamily homes make financial sense. Multifamily homes may offer special opportunity for buyers, first-time or not, since 75% of that property’s potential rental income is added to the buyers’ current traditional income. This added income will thus be considered as paying a portion of the multifamily mortgage.
Multifamily mortgages are the same as single-family home loans, for up to 4 units. Buyers’ credit will continue to be the primary factor for such a loan but the added income permits the buyer to qualify for the related larger purchase price. (Five units or more require non-residential financing, depend more on the income producing capability of the property itself, and should be considered strictly as an investment purchase.)
Multifamily homes generally contain tenants. The owner of a multifamily home who intends to rent one or more units has to be a person who can work with people and who can do at least the lighter maintenance of the property, at least initially. Your host is a successful investor in rental properties and will freely share his experiences, plus and minus. For example, budgets. If not disciplined to work with a budget, you can quickly generate a money-losing situation.
Multifamily homes can be the gateway to home ownership, even at $80-120,000 per unit. Two or more family units can combine assets to more readily qualify for the mortgage loan. Or, as mentioned earlier, the additional rental income can raise the loan amount for which the buyer qualifies.
Multifamily homes are not for everyone. Remember all the past landlords you’ve had, good and bad. Do you have what it takes to be one the ‘good guys’?
Should you have additional questions about whether or not multifamily ownership might be right for, please use the Contact Host option at this website. Otherwise, you are encouraged to use the Find A Home search and investigate those multifamily homes current available in the greater