If you’re like many investors, you’re wondering whether investing in a multifamily property is worth it. This guide gives you some pros and cons so you can make the right decision.
Should You Invest in a Multifamily Property?
For many investors, multifamily properties are where it’s at. However, these types of properties aren’t right for everyone. If you’re considering investing in a multifamily property, there are a couple of approaches you can take to this situation. You may choose to fix and flip the property to another investor, or you may choose to rent out one or more units in the property and collect rent.
Often, duplexes sell for just a bit more than single family homes do, which may mean you’d make less of a profit. Triplexes and fourplexes tend to sell for more – and sometimes to the tune of tens of thousands of dollars. This is a highly personal decision that’s based on your risk tolerance and your ability to make the necessary changes to a multifamily property.
One strategy that’s often overlooked is that of living in one part of a multifamily property while renting out the rest. This is not a feasible choice for everyone, but it may be right for you. Doing so has a few benefits. First, you can essentially live in part of the property for free while your other tenants make your mortgage payments. Second, you can take the profits you earn and put them into improving the home. However, this isn’t necessarily an advisable technique if you’re taking out a hard money loan to pay for the property. That’s because hard money loans generally need to be paid back sooner than traditional loans do, and they often feature higher interest rates than conventional loans, as well.
Do You Need a Hard Money Loan?
Don’t be fooled by our competitors. We are the TOP hard money lender in Georgia, North Carolina, South Carolina and Nashville, TN. Apply for a hard money loan here or click through our site to find out how we can help you now!