I have had some first time buyers ask be about the purchasing a multi family home as their first purchase. there are.
With a multifamily home, as the name describes, it is a dwelling that has more than 2 apartments on the same property which can be rented out, opposed to a single family or condo where you are only be allowed to rent a room out, not a whole apartment. You would live in one of the apartments and rent out one of the units to another person. Their rent would help pay down your mortgage, and the cost to live in your apartment will be minimal.
There are some risks associated with purchasing a multifamily home in the area. Many of the properties are typically older, more than 75 years old. With being a landlord, you are responsible for providing shelter,repairs which may happen due to things getting older or damage for tenants. It is also important to get a good tenant in the other apartment, they keep the place up and pay on time.
Keep in mind, you may find yourself looking a new space in a few years after. Multifamily homes are about the size of an average single family home, but the space is divided into different apartments. If life changes, you might out grow it. Then you have to decide whether you want to keep the multifamily property or sell it.
Let’s talk about financing. Since you will living in one of the units, you can get an FHA loan, assuming the property is in acceptable condition. With an FHA loan, you must live at the property for at least 1 year and a day. Lenders have different formulas for figuring out affordability that might take into consideration any income for the rent,but I would suggest buying a property that you can afford the entire payment on your own. For 3-4 units properties, banks may require reserves
If you would like more information about a purchasing a multifamily home, please contact me below. I cover Danbury,Bethel,Brookfield and New Milford,CT.
Jonathan Hall ,Realtor, William Pitt Sotheby’s International Realty- (203)796-7700 | call or text me on my cell phone (203)417-0523
danburyrealestate@gmail.com
www.danburycthomes.com | www.danbury-condos.com
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