Real estate prices are rising, making it more challenging for families to qualify for the financing needed for the purchase of a single-family home. If you can’t afford to buy a single-family property, does it mean that you will need to wait to be a homeowner? No! In fact, many millennial home buyers are turning to multifamily real estate solutions as a way to build equity, which can be rolled into the purchase of a single-family home in the future.
Multifamily Housing Options
Several options are available if you are open to the idea of buying a multifamily home. For example, one option is to purchase a condo or townhome that is part of a larger community. You will own a portion of the building, with other homeowners who own their areas of the property.
Another option is to purchase a duplex or a property with a standalone apartment. In this scenario, you could live in one part of the building and rent the other portion out to receive money that will support your mortgage payments.
Pros and Cons of Multifamily Housing
Before you jump into the purchase, it is important to consider a few pros and cons of being a multifamily property owner.
- Pros: One of the main benefits is the ability to bring in rental income from your tenants. Use this money to pay off the mortgage more quickly, helping you build up your equity as soon as possible. Many families find that it is possible to live less expensively when they are renting a portion of the property because they can split the costs of the mortgage. Also, consider the investment options for the future. When you are ready to move to a single-family home, then you can rent the unit you were living in previously, resulting in a positive cash flow each month. This strategy is a great way to build wealth and prepare for retirement.
- Cons: Keep in mind a duplex or multifamily real estate purchase usually costs more upfront compared to the purchase of a single-family home. You need to be qualified for the financing and have the cash available for a down payment. Plus, you will be a landlord, which means you will need to deal with tenants and potential repairs if your renter treats the property poorly. Another potential drawback is some families don’t want to share walls with other people. But it might be worth the sacrifice to live in a duplex for a short time because of the equity and investment that is built over the years.
DUFFY Realty can help you find the right real estate solution in and around Atlanta. Whether you prefer a single-family home or you are looking for a multifamily solution, we are here to help. Call to learn about the properties that are available in the area: (678) 318-1700