Many first-time homebuyers may have the idea that there is only one way to get into the real estate market, which is by purchasing a single-family home. Well did you know that purchasing a multi-family home like a duplex can give you more purchasing power and allow you to enter the market as not only a homeowner but also as a smart investor? Why is that? Well, because you will be able to count the rent (or potential rent) being paid by a tenant towards your income to qualify for a mortgage. Current market conditions are making the rental market extremely competitive, allowing owners of properties to be able to rent their units quickly and at high market prices. Many experts agree that due to the high entry into homeownership, it may become a "renter nation".
Some other reasons to purchase a duplex:
Cashflow/income is paid to you every single month.
Lower owner living costs since your tenant is paying part (or maybe even all) of your mortgage costs.
Relatively low-risk experience in real estate investing and being a landlord.
Ability to refinance and purchase another home and keep your duplex as an investment property.
Some things to consider:
Location, location, location!
It can be tricky and difficult to find a good deal with properties with units that are not tenant-occupied.
Being a landlord means you need to be aware of rental ordinances and laws.
Do the math...You need to find a good deal and the right property so that you can make a wise investment!
Our team at The Girl and The Home is here is help and guide you through all the steps and help you make your homeownership goals a reality!