How To Buy Your First Multifamily Home

Investors and business oriented individuals interested in real estate have been affected strongly by the changes of today s lending environment but they continue to buy more properties.

How to buy your first multifamily home. Alternatively not buying right can send you straight to the poor house. The fundamental difference between a multi family property and a single family residence is the potential to generate income. Buying a multifamily home is a great way to generate extra income but it isn t for everyone. Because the investment property will technically be your primary residence you can end up paying around 3 5 for a down payment. Instead of raising financing from one lender consider using crowdfunding as a way to buy a multifamily property.

The first challenge is a lack of experience. Crowdfunding is a way to raise money by asking a pool of investors for small amounts of capital rather than one big investment. Multi family homes may be a risky investment but it is also potentially. 8 negotiation techniques that every newbie needs. Consider these realities before signing on the dotted line.

Buying a multifamily home to live in and rent out has some compelling benefits. Buying right is the first of three crucial steps to a successful multifamily real estate investment. Get this phase right and you are well on your way to a profitable investment. It might even be better than buying a single family house to live in or a stand alone investment property to rent. Once you ve found the right multifamily property to acquire you can sell one or more single family properties while using a tax deferral initiative known as the 1031 exchange.

It often takes years to acquire the knowledge and expertise needed to find assess and purchase the property.