It’s no secret that real estate is one of the best ways to build long-term wealth. What’s less well-known, however, is that multifamily properties are one of the smartest and most efficient ways to get into real estate investing. Here’s what you need to know.

The Smartest Way to Get Into Real Estate Investing Through Multifamily Properties

One of the biggest barriers to entry for many would-be real estate investors is the high cost of buying a property. This is where multifamily properties can be such an attractive option. When you purchase a multifamily property, you’re essentially getting several properties in one, which allows you to spread out the cost and minimize your risk.

Of course, there are other benefits to multifamily properties as well. For one, they’re typically just as easy to finance as single-family homes are. And because you’re essentially running a small business, it may even be easier to get tax breaks and other financial incentives.

But perhaps the biggest benefit of all is that you can live in one unit while renting out the others. This not only helps to offset your costs, but it also gives you a first-hand look at what it’s like to be a landlord. And if you’re smart about it, you can even use the rental income to help you pay off your mortgage faster.

Related: Should you buy a fixer-upper multifamily property in Silicon Valley?

How to Purchase a Multifamily Property in Silicon Valley

If you’re interested in purchasing a multifamily property, there are a few things you need to know. First and foremost, it’s important to understand the local market.

It’s also important to have a realistic idea of what your monthly expenses will be. In addition to your mortgage payment, you’ll need to factor in things like insurance, taxes, and repairs and maintenance. And of course, you’ll need to be prepared to weather the occasional vacancy.

Once you have a good handle on all of these things, you’ll need to start searching for properties. The best place to start is with a qualified real estate agent who specializes in multifamily properties.

Why Should You Live in One Unit and Rent Out the Others?

There are a number of reasons why living in one unit and renting out the others can be a smart move. For one, it helps to offset your costs. And because you’re on-site, you can keep an eye on things and make sure that your tenants are happy.

Another benefit is that it gives you first-hand experience as a landlord. This can be invaluable if you’re interested in becoming a full-time real estate investor.

And finally, if you’re smart about it, you can use the rental income to pay off your mortgage faster. ‘

Related: 5 amazing tips for getting into multifamily real estate investing

Should You Hire a Property Manager if You Live in One Unit But Rent Out the Others?

There’s no one-size-fits-all answer to this question. For some people, hiring a property manager is the best way to run a business as a landlord. A property manager can handle all kinds of tasks for you, including screening tenants, collecting rent, and dealing with repairs and maintenance.

On the other hand, some people prefer to handle these things themselves. If you’re good at DIY projects and you’re comfortable dealing with people, then self-management may be the way to go.

The bottom line is that you need to do whatever makes the most sense for you and your situation.

Multifamily properties are an excellent way to get into the real estate market, whether you want to rent out all the units or you want to live in one unit and rent out the others.

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.

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