All About Multi-Unit Properties
A two-to-four-unit property is a multi-family home, which is a single building that houses multiple families. Examples of multi-family homes include duplexes, apartment buildings, and condominiums.
Multi-family homes can be a good investment for first-time homebuyers because they can be affordable, generate income, and offer tax breaks. However, they can also require more time, money, and overhead than single-family homes. Here are some things to consider when investing in a multi-family home:
- Financing
The rules for financing a multi-family home depend on whether the owner plans to live in one of the units. If the owner doesn't plan to live in the property, they may be able to use projected rental income to qualify for a mortgage.
- Income
Multi-family homes can generate multiple streams of income because they have multiple units to rent out.
- Maintenance
Multi-family homes require more maintenance than single-family homes, and the owner may need to hire a property manager.
- Risk
Multi-family homes can reduce the general risks of real estate investment because they offer multiple units to rent out.
Want to learn more about 2-4 Unit properties and buying power?
Pre-Register for our next House Hacking class with Pete Moy and Aaron Rouser.
House hacking is the proper application of an owner occupying a property, where a person buys a duplex, triplex or fourplex, lives in one unit and rents out the rest.
It is one of the best ways for people new to Real Estate to dip their toe in, get their first investment property cheaper, start building equity and at the very least, get their largest monthly expense, typically their rent, covered and live rent free.
Learn how to get it done with the cheapest loans available, what are the resources available to you? How do you do it the right way? How to calculate your projected cash flow? How to know how much house you can buy and are qualified for in order as to not have to call your lender for every property you analyze.