Multi-family homes offer great investment opportunities and options for future income revenue. You can use them to expand your real estate portfolio or just create more income stability. We’ve found seven great reasons to invest in multi-family homes. What did we miss?
When you buy a multi-family home, even a duplex, you can live in one space, and rent out the other(s). If you have a $200,000 mortgage on a multi-family property, and rent out the three bedroom upstairs for $1500/month (that’s a pretty good price for a three bedroom place around here), you would pay your mortgage with the tenant’s rent. Imagine if you had more than one tenant!
EASY PROPERTY MANAGEMENT
If you’re a property manager, you know that owning and managing two single family homes is harder than owning one duplex. Having the tenants, the repairs, the maintenance, and everything else, all in one place makes life incredibly easier.
CREATE PASSIVE INCOME
Maybe you already have a nice home and you’re just looking to expand your real estate portfolio. If that’s the case, you can generate a good amount of passive income, with little to no work for you. Using the same example as earlier, but renting out both properties, that’s $3,000 in rent coming in every month, with less than $1,400 in expenses. That’s $1,600 a month that you don’t have to work for!
Owning a home provides tax benefits in and of itself, but what if you could write off every maintenance and repair request? You can write off all of the taxes and insurance, along with mortgage interest and any expenses related to owning the property.
If you buy and maintain a multi-family, you’ll not only attract tenants; you’ll also attract savvy real estate investors willing to pay top dollar to continue their investing. If you’re willing to put in a little bit of work to make sure it stays maintained, you can almost guarantee you’ll get a nice payout when you’re ready to sell
CONVERT TO A SINGLE FAMILY
If dealing with tenants and renting out part of your home doesn’t sound appealing, a 2-3 family home can, with a little work, be turned into a very nice single family home.
GREAT LOCATION = REBUILD!
Maybe it’s just more work than it’s worth to maintain or fix up a property, but the location is the bee’s knees. You can always tear it down and rebuild it just like you want it.
Does a multi-family home sound like your cup of tea? We have a few to choose from right now, but they’re going fast, so call us today to setup a showing!