Buying a multi-family home with the intent of living in one unit and renting out the others can be a smart financial move for many home buyers. It offers the opportunity to have the rental income help cover the mortgage payment, making homeownership more affordable. However, it’s important to carefully consider all factors before making the investment. Here are a few things to keep in mind when looking for the perfect multi-family property.
| Location | When it comes to real estate, location is key. Look for a property in a desirable neighborhood with good schools and access to amenities. Consider the property’s proximity to public transportation and shopping as well. A good location can make all the difference in attracting quality tenants. |
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| Maintenance | Owning a multi-family home comes with the responsibility of maintaining the property. Consider the cost and time involved in maintaining the units and common areas, and whether you have the resources to do so. |
| Parking | Adequate parking is an important consideration for potential tenants, so it’s crucial to have enough spaces for each unit. |
| Zoning | Before buying a multi-family property, check with the local zoning board to see if the property is zoned for the number of units you intend to rent out. Some areas have restrictions on the number of units in a building or the percentage of a property that can be used for commercial purposes. |
| Financing | Financing a multi-family property is different from financing a single-family home. Be sure to understand the requirements and qualifications for a multi-family mortgage before you start shopping. |
| Rent Potential | It’s important to have a good understanding of the local rental market and the potential rental income you can expect. Be sure to take into account all expenses, such as property taxes, insurance, and utilities, when calculating the potential profit from your investment. |
By keeping these factors in mind, you can make an informed decision about whether a multi-family home is the right investment for you. To help with your search, be sure to download our guide to buying one’s first investment property. Our guide provides in-depth information on all the steps involved in buying an investment property, and will help you make a confident, informed decision. Don’t miss out on this opportunity to learn more about one of the most lucrative investments in real estate!
