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I’m in the process of closing on a multi family house. It takes a while to find the right one for you so don’t settle. There are a million different configurations and every house will be slightly different. Definitely finding an owner occupied one is a plus. The side you would live in is usually bigger/ well maintained and the property it’s self is usually better maintained. It has definitely made the home buying process more annoying but in the end the tenants are paying more than half our mortgage/insurance/ taxes.
Thank you for the advice! I’ll have to look into the owner occupied suggestion that you mentioned
If you are married and want your parents to live in separate house, when you’ screen house, what are the must have in those houses?
I lived in my multifamily unit and saved a ton of money because the renta paid my mortgage. I have since bought a single family primary residence and i have to deal with issues at the multi family occasionally. Just two weeks ago I had a huge plumbing issue that took my entire weekend and $1k in expenses. I rent to section 8 tenants so the rent is guaranteed and paid timely by the city on the 1st of the month. Overall its a great investment if you live close by. Otherwise you will need a management company and maintenance person to help with issues. Also, I have built over $600k in equity since I purchased it. I don’t want to sell because I like the idea of having a perpetual income stream that I don’t need because I earn a lot at work.
I owned a few apartments. They take much more time than you would think. On average, each unit will take 100 hrs a year and make your weekends miserable if you're a typical white collar person.
Yield is about 7-8% a year after maintainance, hoa, tax, contingency for vacancy and capex, but will easily drop to 4-5% if you have no knowledge of home maintenance and rely on 3rd party. If you do repairs yourself, it's cheaper but you basically have no weekend.
Yes, don’t. Recommend it as long as it’s in an area you want to be in
And if the tenants don’t pay, it can be a process to get them out. Def helpful to have someone handy to fix stuff.
Pros are you have help paying mortgage. The cons are we had a tenet that wouldn’t pay and the eviction process takes a while and is costly. These tenets were nasty told me they have rights. These tenets also destroyed the apartment. Now we have a tenet that been her for 5+ years super quiet, very clean, pays and actually on time. I’m ok if you’re a little late but not paying at all was not fun. Just make sure you can afford the entire mortgage on your own.
Depends
Great answer LOL v helpful