If you’re like many people, you know that real estate investing is a smart choice, but what about multifamily properties? Is multifamily housing a good investment? This guide explains.
Is Multifamily Housing a Good Investment?
For many people, multifamily housing is a great investment period that’s because it has the potential to earn double, triple, or even four times the amount a standard single-family home would earn. Additionally, there are a few things you can do to make your property more lucrative, such as living in one unit while renting out the others.
A Word on Living in One Unit While Renting Out the Others
Many people find that living in one unit while renting out the others in a multifamily property is a smart choice. That’s because they’re on hand when tenants need them, and they’re living rent free. In fact, if you rent out one or more additional units in the same property, there’s a good chance that rental income alone will pay for the mortgage on the property. For many investors, that means more earnings available to go toward improving the property or even purchasing another property.
Is it Easy to Finance a Multifamily Property?
Often, investors find that financing a multifamily property is just as easy as financing a single family home. In fact, you can use a conventional mortgage loan to finance a duplex, triplex, or fourplex – you don’t need to apply for special financing like you would if you were buying a property with more units in it.
Extra Security in a Multifamily Investment
If you rent out a single family home, and your tenant moves out, you’re on the hook for the mortgage payment all by yourself until you find another tenant. However, if you rent out two or more units in the same property, and one tenant moves out, you still have rental income coming in. For that reason, many investors find that multifamily housing is a good investment.
Do Multifamily Properties Cost More Than Single-Family Homes Do?
Multifamily properties sometimes cost more than single family homes do. However, with the right down payment and the right real estate agent by your side, you can find a multifamily property that fits within your budget. additionally, remember that when you purchase a multifamily property, you have more than one unit available to rent. Depending on the size of the units and the location of the property, the amount of money you bring in through rent payments can pay your entire mortgage (and then some).
Is Property Management Harder With a Multifamily Property?
Whether you intend to manage your own property or hire a dedicated property manager, running a multifamily property is no more difficult than running separate single-family properties. Some investors even believe it’s easier, particularly those who live in the same multifamily property with their tenants.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
If you’re also looking for a new multi-family property for sale or another type of home, check out our:
- Duplexes for sale in Santa Clara County
- Triplexes for sale in Santa Clara County
- Fourplexes for sale in Santa Clara County
- Single-family homes for sale in Greater Silicon Valley