Why Choose Multi-Family Homes or Apartment Buildings?
Both multi-family homes and apartment buildings offer you, the real estate investor, the unique opportunity to own property which is generally at a lower risk to you than a single family home. Additionally, both offer you the ability for obtaining monthly passive income as well as appreciation in equity in the building itself. There is generally a strong demand for multi-family homes and apartment buildings by seasoned real estate investors.
How to Choose the Right Property?
Choosing the right property to invest in is a matter of evaluating the value of the property you are considering and the incomes it generates. You would be well advised to do your due diligence on the property and review its income potential and possible yearly expenses.
How Much of a Down Payment is Required?
Generally the purchase of a multi-family home or apartment building will require up to 30% down versus the lower down payment requirements that come with purchasing a single family home.
How Do I Qualify for a Mortgage for the Balance of the Purchase Price?
Generally, to qualify for a mortgage loan for the balance of the purchase price you will be asked to offer a personal guarantee for the loan. This can many times be interest in another property or in your own personal residence.
Managing your Property
Once you have purchased your multi-family home or apartment building you would be well advised to hire a property management company to deal with all of the various tenant issues which will likely arise. This will free up your time for your real estate investment business and not have to deal with the day to day issues of the residents of your building.