What Are the Benefits of Buying a Multifamily Home?
A single-family home means an abode just for your family. But when you purchase a multifamily home, multiple families can live in the same house.
A multifamily home is a property that has more than one housing unit. Each unit has its kitchen, bedrooms, bathrooms, and so on, but all the housing units are under the common roof. Usually, multifamily residential homes have four housing units, while apartments have five or more teams.
The purpose of this blog, we’ll believe you are planning to buy a multifamily home and are eager to know its benefits. With this thought, we have mentioned below four advantages of buying a multifamily dwelling.
So, without any further ado, let’s start the discussion.
Four Benefits of Buying a Multifamily Home
Extra income source
You might be thinking, why buy multifamily real estate rather than a single-family home. Right? Well, when you own a multi-family home, you have an excellent opportunity to rent out whichever units you want.
The rental income will prove as your extra income. You can apply that income to pay off your personal or multifamily real estate loans sooner. Thus, save your interest for the duration of the loan.
A great option to live together
Most of the time, family members consider buying multifamily homes to help one another out or save housing costs. It’s easier to live in shared quarters. The benefit of living in a multifamily home is easy multigenerational living.
When you purchase a single-family home, you can enjoy several tax breaks, such as taking off your loan interest or calling off your property taxes. But when you plan to buy a multifamily home with some rental units, you may have the chance to reduce expenses regarding the housing units you don’t use or live in, such as upgrades, maintenance, and depreciation.
Easier long-term multifamily financing
Is it a good time to buy multifamily? No doubt, multifamily homes are likely to cost more than single-family homes. You might think it would be tough to qualify for a multifamily real estate loan. Well, not so. It’s usually more accessible to quality for long-term multifamily financing.
The reason is that multi-family real estate properties have a great potential to generate income. In addition, mortgage limits are higher for multifamily real estate than for single-family homes.
The Bottom Line
In most countries, loan limits for single-family homes top out at about $484,350, while for two or more units’ properties, they may top out up to $620,200. In the same manner, FHA loans are about $314,827, but for a multi-family property, it may reach up to $403,125.
So, that’s all about the benefits of buying multifamily properties. We hope that our post will help you. If you still have a few queries left in your mind regarding multifamily financing, feel free to call us at (803) 485-1080. One of our experts will try to help you.