One of the benefits of buying a multi-family home is the ability to use the rent payments to help pay your mortgage. This lets you have a lower housing expense and build more real estate equity. A two- or three-family home can be a great investment, but it’s not for everyone. Use these questions to help you decide if buying a multi-family might work for you.
How comfortable are you with home maintenance?
You might have the tools and not mind doing small jobs, or you might know somebody reliable who is handy. But remember, there will be two or three kitchens, two or three baths, painting, plumbing, electrical, and yard work.
How are your boundaries?
Your tenants will be your neighbors, maybe even your friends or family. These can be really rich relationships, but having tenants can also be complicated and contain possibilities of miscommunication, differing expectations, even court action.
Do you have a cash cushion?
That mortgage payment is due every month - whether your apartment(s) are rented or not.
If you are still excited...
then a multi-family with its mix of home and business may be right for you. We have a lot of experience and excel at working with first time multi-family buyers. Call or email us and let’s go look at some houses!
Some two-family homes have a modest “rental” unit and a larger “owner” unit. You can live economically in the smaller unit until you need the larger space. The higher rent you can get from the larger unit will pay a larger part of your mortgage payment. Or you can live in the larger unit, yet still have part of your mortgage paid by the rent. Click here for our Multi-Family Financial Worksheet. Call or email today to discuss your multi-family thoughts and ask for your customizable Investment Decision Worksheet.
When you’re ready to move to your next home, you have the option of keeping the multi-family as a rental property for extra monthly income, for future college tuition, or to help finance an early retirement.
If selling is the right strategy, you could sell it as a multi-family. You could also sell each apartment separately by converting to condominiums.
We can help you plot your path through the perils and promises of multi-family homeownership, so call or email us.