A multi-family home is a building that can accommodate more than one family living separately. It can be a duplex (with two dwellings in a single building) or homes with smaller apartment buildings having four units.
The owner of the multi-family home can choose to live in one of the units and rent out the others or rent them all out and live on another property. You’ll be an investor if you don’t live in a multi-family home, and the rules of getting a mortgage will be different. However, you can use the projected income to help you qualify for the mortgage and a higher loan amount. Here’s what you need to know about multi-family homes and how they work.
Benefits of Investing in a Multi-Family Home
The income earned through the property can be used to manage the cost of your mortgage, insurance, taxes, and other property expenses leading to an income stream. As a result, you can handle the repairs and maintenance of your property without any hassle. You can even respond faster, given that you live in or close to the rental property.
A multi-family home is a suitable option for multi-generational families who prefer being close to each other while retaining privacy.
Growing a Portfolio
Property investors who tend to build a large portfolio of rental units can acquire a multi-family home. Investing in a 20 unit apartment building is easier and more time-efficient than buying 20 different single-family homes.
With the latter option, you will have to deal with 20 different sellers located at different addresses. In addition, this may require an investor to open 20 separate loans for every property. This overwhelming situation can be avoided by purchasing one property with 20 units.
Finding a Multi-Family Home
Like every other property, multi-family homes are available for sale on several real estate search websites. Moreover, a real estate agent can also help you find investment opportunities in areas of your preference.
Some real estate investors may hire property managers to handle the day-to-day operations of their rentals, like collecting rent payments, screening tenants, and maintaining the property. Investors owning one or two single-family homes don’t have the luxury to contract such professionals due to their small portfolio. However, the amount produced by multi-family homes every month gives owners the benefit of property management services.
Buy a property in Michigan City with the professional assistance of WHY LANE Coldwell Banker Realty. Their real estate brokers in Sawyer will show you the best properties for sale according to your preference and family needs. Moreover, they also deal in lakeside homes for sale and help homeowners sell their property without hassle. Get in touch with them for more information.