A multi-family property is any building designed to house more than one family in separate housing units. The most popular of these are apartments/condominiums and townhouses. However, in our multiple listing service, condos and townhouses are separated into their own search parameters, because they’re individual units for sale, and multi-family is reserved for duplexes, triplexes, and quadruplexes, which are whole buildings for sale and what I will be writing about here.
Multi-family homes aren’t for everyone. However, if your circumstances are right, they can provide some important advantages for you.
- You can live in one unit and rent out the others to help pay your mortgage.
- Multi-family rentals are hot at the local beaches!
- There’s a growing demand for rentals.
- You get to control who you live next to.
- You may be able to save money on utilities and cable.
- Multi-family properties are good for keeping family close by while allowing them to have a “separate” home.
- There’s potential to make some good money off them.
- Multi-family homes are harder to sell.
- They appreciate at a slower rate (but don’t bottom out as quickly as single family homes).
- Financing can be tricky.
- Multi-family homes are treated differently by the IRS than single family homes (deductions are only available for your portion of the residence).
- Buildings deteriorate quicker due to extra wear.
- Being a landlord can be stressful: you’re basically a small business owner, who is required to handle all repair issues, and you’ll need to maintain a savings to pay for them.
- You’re relying on someone else to pay on time.
So, if you’re looking for a property that will help save you money on your mortgage or will allow you to keep your family close and are willing to take on the responsibilities of being a landlord, you may want to consider purchasing a multi-family home.
If you’re interested in seeing any of the multi-family homes on the market right now, give us a call or send us a message through our Contact page. Likewise, if you have any questions about financing. We’re always willing to help!