6 Steps to Buying a Multifamily Property
When you’re ready to buy a multifamily property in Silicon valley, whether you’ll rent out each unit or occupy one while renting out the others, you’ll need to follow a specific set of steps to get to the closing table. The purchase process for multifamily properties, including duplexes, triplexes and fourplexes, is different from buying a single-family home.
Steps to Buying a Multifamily Property
For many people, multifamily properties are great investments. In order to buy one successfully, you have to:
- Outline your goals
- Find a REALTOR® who specializes in multifamily properties
- Get preapproved for a mortgage loan
- Start looking at communities and neighborhoods
- Zero in on properties that may meet your needs and goals
- Make an offer the seller can’t refuse
Here’s a closer look at each.
Step 1 to Buying a Multifamily Property: Outline Your Goals
Maybe you want to live in one unit while renting out the others, or perhaps you want to rent out the entire property while you stay in your current home. Maybe you only want to purchase one investment property, or maybe you’re starting to build a real estate empire. It’s important that you take a good look at your goals before you dive into the multifamily real estate market with both feet.
Step 2 to Buying a Multifamily Property: Find a REALTOR Who Specializes in Multifamily Properties
Although there are many talented agents, you need to work with a REALTOR who specializes in multifamily properties if you’re going to purchase a duplex, triplex or fourplex. Because these types of transactions are much different from single-family home transactions, it’s important that you work with an agent who understands how multifamily properties and investment properties work.
Related: Find a REALTOR to sell your multifamily property
Step 3 to Buying a Multifamily Property: Get Preapproved for a Mortgage
Don’t start looking at properties in person until you’ve been preapproved for a mortgage loan. You need to know exactly how much house you can afford before you get your heart set on something that’s too expensive – or below your price range. (You can spend all day looking at properties online, though. In fact, you can use the button below to see what’s on the multifamily property market now.)
Step 4 to Buying a Multifamily Property: Start Looking at Communities and Neighborhoods
Some communities and neighborhoods are more desirable to investors, which makes sense; some areas command higher rents than others do. Sometimes a neighborhood that’s five minutes from a popular Silicon Valley employer is more desirable to renters than one that’s 25 minutes away; a property that’s close to public transit, highly rated schools or plenty of amenities may be a better investment than one that’s on the outskirts of town. You may be able to gauge how desirable a community or neighborhood is based on its real estate prices, which you can check online.
Step 5 to Buying a Multifamily Property: Zero in on Properties That May Meet Your Needs
After you’ve narrowed your search to a specific city, and maybe even a few neighborhoods within that city, it’s time to start seeing properties in person. Talk to your REALTOR about what you’re looking for so she can help you find the right investment.
Step 6 to Buying a Multifamily Property: Make an Offer the Seller Can’t Refuse
When you’ve found the ideal investment property, your REALTOR will help you put together a great offer. Listen to your agent when she tells you about your options, which include offering less than, equal to or more than what the seller is asking – your REALTOR is your connection to the inner workings of the Silicon Valley real estate market.
Are You Ready to Buy a Duplex, Triplex or Fourplex in Silicon Valley?
Buying a multi-family property does not have to be complicated, Debbie Marino is here to help. If you live anywhere in Silicon Valley, click here to set up a strategy call to discuss your options and get started investing today.
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