One of the best options to consider when looking for a piece of real estate to use as an investment is a multi-family home, mostly because the multi-family home can provide you with a fair amount of rental income. Listed below are two reasons to consider purchasing a multi-family home.
It Can Make You Money
One of the biggest reasons that many people consider purchasing a multi-family home is the fact that it can make them money. For example, you could rent a duplex and live in one side of the duplex and rent the other one out.
Depending on the desirability of the neighborhood, the rental income that you make from the other half of the duplex could potentially pay the majority or the entirety of your mortgage. In addition, if you rent both sides of the multi-family home out, you could end up paying for that property and even still be able to pocket enough money to buy a single family home for yourself from the rental income alone.
It Can Make It Easier To Get A Loan
Another reason to consider purchasing a multi-family home is that can make it a lot easier to get a loan. The reason for this is that when you are purchasing a multi-family home with the intent to rent, you are getting a single loan for the entire building. If you are buying condos over time, you will need to get a different home loan for every single unit that you buy, which can get progressively harder as you have more loans in your name.
Another reason that purchasing a multi-family home can make it easier to get a loan is the fact that you can often use a signed rental agreement stating that you have someone ready to move into the home as soon as you purchase it to improve your chances of getting a loan. This is because the bank will look at that rental agreement and use the agreed upon rent in that contract as part of your income, which makes it less of a risk on the part of the bank to extend a loan to you.
Contact a real estate agent who specializes in multi family homes for sale in your area today in order to discuss the various benefits that purchasing a multi-family home can provide and to determine if there are any multi-family homes that meet your criteria. You will want to consider a multi-family home because it can make you money and make it easier to get a loan.