Top Ten Reasons Why You Should Buy Multi-family Homes
Are you thinking of buying a multi-family home as real estate investment? Good for you! There are a number of advantages. Let’s talk about ten benefits of buying a multi-family home in Orange County, California.
1. Multiple Sources Of Income
You could invest in a single-family home and collect a pretty decent rent from one family. But if you buy a multi-family home, you have several sources of income. This means that you’re maximizing the income from your available space, and it also means that if a tenant should move out, you still have other sources of income. You’re also not left holding the bag, with your mortgage payment and taxes due, your maintenance expenses still needing to be dealt with, and nothing coming in.
2. Lower Maintenance Costs
Many families. One roof. One sewer system. One furnace. Do we really need to say more?
3. Better Use Of Your Time
What would you prefer to do? Look after eight single-family dwellings, or a multi-family home? And when it’s time to sell, what would you rather do? List eight houses, or one building? The answer is obvious. Buying a multi-family home as real estate investment would be a great move.
4. Less Competition
When you’re offering single family homes for rent, you’re competing with a lot of other property owners. This is simply because not everyone has the expertise or the focus to deal with multi-family homes and tenant issues. If you get it right with a multi-family home, you have a lot more potential to succeed in real estate investment.
5. Little Cash Outlay
You can raise private money to make your down payment. It’s easy to get financing, because your lender isn’t looking at your credit score – what matters is whether or not your multi-family home has the potential to generate income.
6. Your Property Value Increases In Proportion With Your Income
Raise your rents, and up go your property values. Down go your expenses. When you’re ready to sell, you have a property that’s generating a lot of income for the potential buyer and is highly valued.
7. Lower Risk
You lose one tenant, and it’s not the end of the world. With a single family home for rent, vacancy can be the kiss of death – you’ve lost the income from your tenant, but you’re still paying the mortgage and the taxes, and still paying for upkeep. So, buying a multi-family home for investment is definitely a better option.
8. Non-recourse Financing
The more you borrow for your income properties, the easier it is. Simply stated, your assets are your security. You’re not personally guaranteeing the loan, and you can leverage your assets to borrow more money to buy multi-family homes to generate more income.
9. Condo Conversion
You buy a multi-family home, do some upgrades, and then go condo, selling the individual units. You put cash in, and then you pull out, and then you take even more cash with you.
10. People Have To Live Somewhere
Let’s face it, not everyone can afford to buy a home. So what are they going to do? They’re going to rent. They might as well be renting from you, right? So, do yourself a favor and buy multi-family homes in Orange County, California or Georgia.
Clearly, there are a number of advantages associated with buying a multi-family home as a real estate investment. You really have to do very little, and if you should happen to find yourself in the enviable position of having more properties than you can reasonably handle on your own, you can always hire a property manager to take a little of the pressure off yourself. What are you waiting for? Buy multi-family homes in Orange County, California.