Real Estate Investing – Benefits Of Multi-Family Homes

August 1st, 2011
by Doherty
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Image by cindylinsf via Flickr

You can start real estate investing in so many ways.  For some investors and commercial real estate agents, they begin with Duplexes Mesa Arizona since these form of property asset generates income.  Let’s explore how can a multi-family home, a building designated to house more than four families, be one of the fastest paths to financial independence.

1. It generates income – Competition is high when it comes to buying single-family homes, but less intense in multi-family homes.  In this case high competition means prices of home might get increase and if this happens you cannot really generate income from them even if you have 5 single-family units unoccupied because of its expensive price.  A multi-family home has several units that can generate income and bring you cash every month. Repair cost per unit is lesser compared to a one single unit that needs repairs and maintenance. No worries if you don’t have a job.

2. It pays its own expenses – Payment for the property’s mortgage, taxes, utilities, payroll, advertising, landscaping, and so on is not taken from your pocket.  The property can generate income that can pay for its own expenses.

3. Cash flow even when its not 100% occupied – If you have three over four units occupied, the empty unit could not make a big difference in your cash flow. You can still pay for mortgage or property expenses and still have income.

4. It is easy to manage – Put side by side, a four-unit multi-family hoem is easier to maintain than a 4 single-family homes in different locations.  Furthermore, contractors will give you a better pricing if you are building multiple units.

5. You’ll have extra income called “ancillary” income – Ancillary income may came from vending machines that dispense canned drinks, or laundry services  that companies pay to you while they provide services to your tenants.

6. it’s easy to get a loan – Investing in multi-family properties promises an easier loan approval compared to non-income producing~single family South Riding VA Real Estate because lenders qualify and approve these types of loans based on the properties ability to repay the debt itself.

These are just some of the benefits investors get from investing in Stafford VA Multi-Family Homes. Besides leverage, landlords of multi-family homes can enjoy tax refund from property repairs. Keep in mind this directly proportional flow of benefits from multi-family homes – multiple tenants mean multiple revenues, and multiple revenues decrease your risk in real estate investing. Real estate investing does not solely focus on single-family properties, multi-family properties exist to make your investment multiply and be profitable.

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