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Posted by Coldwell Banker Murray Real Estate on 1/30/2018

Investing in a multifamily home could be a smart choice for you. The rental market is always in demand in areas all across the country. Even in a buyer’s market, there's plenty of people who still need to rent for one reason or another. 


Homeowners Associations Can Save You A Lot


There’s a lot less maintenance involved on your part if you buy a property that’s a part of an association. There will be less landlord responsibilities on your part since everything outside of the walls is considered a common area. The dues that you pay each month, known as HOA fees, are what helps to take care of all these maintenance issues. 

Before you invest, you’ll need to take into account the monthly fees along with your financial plan. On the downside, if your association has some issues that can’t be worked out, you’ll end up having a special assessment charged to you. You may want to do some research before you sign up with an association. 


You’ll Save On Taxes


Buying a duplex is a pretty good deal. As far as taxes go, it counts as one building, yet, you’re getting monthly rent from tenants. Alternatively, you may choose to live on one side of the property, and rent out the other side. Either way, you’re saving on both taxes and insurance because both of these fees are blanketed under one building.


You Can Bring In Some Revenue With Multifamily Units


The rent-to-purchase price ratio is generally better with multifamily units. The amount of money that you’ll bring in each month with rent will almost always be more than the amount that needs to be paid for the mortgage. Keep in mind that some money must be set aside for maintenance costs and other emergencies. This is where the phrase “income property” comes from.  


You’ll Be In A Prime Location With Multifamily Homes


When you’re planning to rent out properties, you want to own a building where people want to be. These types of units are often seen near colleges, universities and urban areas. You’ll always have a lot of people who are looking to rent, which means properties won’t be left vacant for long.


A Rental Can Be Great Retirement Income


Whether you’re an empty nester with plenty of rooms in your home available to rent, or just someone who would like to build up some equity, using a property as a rental is a great way to make some additional revenue. If you choose to rent out part of your home, make sure that you have a lease with well-defined terms and a set of house rules. You may need to define things like what food will be shared, set up a laundry schedule and state how utilities will be paid and when.





Posted by Coldwell Banker Murray Real Estate on 5/17/2016

If you are thinking about owning a piece of property to live in while wanting to have an extra section to help pay the bills, then you will find that there is an effective way to do it. Today, many people are considering the idea of buying a multi-family home, because this allows you to have your own space for you and your family while getting extra income from renting the other apartments. Keep in mind that as advantageous as this is, there are a few points that you have to consider. The first thing to keep in mind is becoming a landlord will require some extra work. When repairs are needed, or a tenant does not pay the rent it can cause some unwanted worries. This being said it can also be a great way to start off allowing you to live, in some cases, rent free while getting monthly income to help pay down your mortgage. Another point to remember is that when it comes to renting, is choosing the right tenants, you have to remember that you are in fact running a business, as you will be collecting an income from the home you are renting. Take the time to choose the right tenant, a credit check, otherwise you might find yourself in a situation where you will be losing money if your tenant does not pay up at the end of the month. If you are willing to put in the work, purchasing a multi-family home can be a great way to invest.




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