Many first-time homebuyers are attracted to Multi-family homes, for various reasons. Here are some pros and cons of purchasing a multi-family property.
Pros:
-You may qualify for a higher loan amount, due to the lender using the other unit’s proposed rental income.
-Your mortgage payment will be cheaper, as it is getting divided by the tenants and yourself.
-Your multi-family home can also become a long-term investment after you decide to move to your forever home.
-The property can also be used for taxed deductions for repairs you do on the property.
Cons:
-A multi-family property on average will be more expensive than a single-family home.
-As a landlord, you will need reserves to pay for repairs.
-Whether or not your tenant pays the rent or not, the mortgage is due; you must be prepared to pay your mortgage.
-Property Insurance is much higher on a multi-family than it is on a single-family property.
Weigh your pros and cons and see if a multi-family is a good fit for you!