Are you getting ready to move into a new house? Have you considered moving into a multi-family home? While the thought of buying a multi-family home and moving in may seem foreign to many of us, some savvy homebuyers are doing just that. Why?
As you have probably noticed, the prices of houses across the country continue to drop while mortgage rates move in the opposite direction. All the while, job growth is less than stellar. Buying a multi-family home will allow homebuyers to add a rental unit (or two or three) to their home, which means extra income during these trying financial times.
Of course, playing the real estate game can be tricky – and costly – but it can also be pretty lucrative if you do it right. But, acting as not only a real estate investor but also a live-in landlord definitely has its perks and benefits. And the numbers are pretty telling. In New York alone, the sale of multi-family homes has increased by 26% in the past year. In Chicago, Illinois, the jump is even more surprising – 77%!
Many real estate professionals are telling buyers to look a little more closely at all the negative stuff that is going on right now. If you look hard enough, they may actually seem like positives. Home prices haven’t bottomed out everywhere. Mortgages aren’t as insane in some areas. You just have to keep your eyes on the prize and move with the market.
Additionally, more people may be buying and moving into multi-family homes these days simply because the federal government is encouraging it. They’re doing this by increasing the amount of money buyers can borrow but still qualify for a lower rate mortgage. This gives potential buyers a little more leverage and breathing room.
Once you move into your new multi-family home, you have that extra income that can go toward paying your mortgage each month. Why not let someone help foot the bill? It doesn’t have to last forever, and if your family decides to grow, you can always work to convert your home into a single-family home.
While all that sounds great, there are still some caveats to buying a multi-family home. Of course, there is absolutely no guarantee that prices will ever rise. And, you must be comfortable with the idea of having tenants and being responsible for their needs as they relate to their rental. But, if you can deal with that, there is still a very high demand for rental properties.
So, if you are thinking of buying a new home, why not consider a multi-family property? It may work out for you in ways you never imagined!
Jon Huser
