1.) Buying a duplex, (multi-family residence), will produce income for you on a regular basis. Additionally, most people want a single-family home so the competition is not as fierce for a duplex when you are trying to purchase a single family home. This lessens your risk of over paying for your new home. Likewise repair costs are lesser when you compare the costs for a single family home. If you should lose your job, I hope not, you still have income to offset the mortgage from the rents you regularly collect. Please read the remaining Six Reasons To Buy A Multi-Family Residence
2.) Income properties like a duplex, tri-plex or bigger units through the rents you collect will pay for its own expenses. It pays for your principal, interest, taxes, insurance, utilities, advertising, landscaping, management costs, and more. These costs don’t come from your personal accounts they come from the investment’s property account.
3.) You will have money coming in every month, year in and year out, even if you have a vacancy. Sure the empty unit will cause you loss of revenue, however, the rents from the other unit will help off set any of your fixed expenses. So your losses will be minimized at worse.
4.) When you have a multi-family residence they are easier to manage and keep up than say the same number of single-family homes, which could be scattered all about in different locations. And if you are thinking about building your own multi-family residence the cost are much cheaper than personal single-family homes of the same number.
5.) If you wanted to offer features like washing machine and clothes dryers to your multi-family residence or any other coin operated machine you would get another steam of income off of them. (Only your imagination is holding you back from coming up with another steam of income.)
6.) Lending Institutions look favorably on multi-family residences because they will qualify and approve your loan more quickly by taking into consideration a portion of the rents as your qualification requirements. They know the property will repay the debt itself.
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