Investing in Multi-Family Homes

Posted by admin | Investment Property,Multi-Family | Friday 16 December 2011 8:45 pm

One of the best ways to invest in real estate is by investing in Multi-Family Homes. These are residential properties with 1 to 4 units.

Multi-family homes offer advantages over apartment buildings, and over single family homes. If you plan to own property with the goal of obtaining long term rental income, then the best way to get started is with multi-family homes which include, duplexes, triplexes, and fourplexes.

While single family homes are typically the easiest properties for the common man to purchase, they are usually not the most efficient in terms of rental income. The cost per unit often does not yield a very good rental income. It is much harder to generate positive cash flow for single family homes.  In addition, single family homes are definitely harder to manage. Each house has its own yard that may require maintenance, whereas, a multi family home has only one lot for several properties.

The big advantage that mulit-family homes have over apartments, is that they can be purchased using standard residential home loans. Residential home loans are much less expensive, and easier to obtain than commercial loans, which are required for buildings with more than 5 units.

Buyers of multi-family properties can also benefit from even lower interest rates by living in one of the units. Primary home loans are less expensive than investment properties. When an investment property buyer purchases a home with the intent to live in it, they can see additional savings from being an owner occupier. Even if they leave the home after living in it for a time, they still get to keep the great interest rate.

There are several advantages of purchasing investment properties. Here are some useful links to help you find investment properties for sale in Utah: