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Multi-family Units
If you are a newcomer to the business of real estate investment, you may want to consider buying a multi-family unit, because the potential for monthly income is often greater than it is for a single family unit. Take for example, the case of a building that you buy for $300,000. If you have a mortgage payment of $1,800 per month, you can lease the property to a family and if they pay you at least $1,800 per month, you will break even, not counting repair, taxes, and other miscellaneous fees.
But if you spend the same amount of money and buy a house that will hold three families, you only have to bring in $600 per family to make the same amount of money ($1,800).
And if your units are nice enough, or are in a high-demand location, you may be able to ask higher monthly rents. If you charge $800 a month, for example, you will have monthly cash flow of $2,400, representing a net above mortgage expenses of $600. With the extra $600, you could invest in a small one-bedroom house, and live there rent free. Or you could buy a second investment property, adding to your financial nest egg.
Weigh the pros and cons of multi-family units by discussing your goals with a qualified real estate specialist. After both of you have done the math and made a plan, shop for the most suitable investment your money can buy.
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Real Estate Investing |
