The possibilities for generating income are great when you learn how to buy a buy a multi family home. You can live in one of the units and make money from your real estate investment by renting out the other unit or units. You may want to buy a multi family home so you can live in one unit and a family member can live in the other unit. It's also possible to rent all of the units to generate the most income from your investment. It's important to know some basic real estate facts before buying a multi family home to protect your money and your sanity.
To buy a multi family home, you will need:
- Down payment
- Loan approval
- Funds on hand
Real estate agent
- Begin with the finances. Before considering buying a multi family home, know how much money you have for a down payment. To obtain a commercial loan, which is what you will need to be able to purchase income property, you will need to have a down payment, usually of at least twenty percent of the price of the property. Determine how much you can afford each month for the mortgage payments on the loan.
- Become familiar with commercial loans. There is no guarantee that the rental units will be rented each month so having the funds on hand to make the payments is key to a successful investment.
- Look for a good location. To make a smart investment decision, look in good parts of town for a multi family home to buy. The better the location and area, the better the renters you will find to rent the property.
- Work with a real estate agent. There is no fee to the buyer when buying real estate so enlist the help of a good real estate agent who works with commercial property. They will be able to answer questions you will have to help you make an informed decision.