How To Buy Your First Multifamily Home

It might even be better than buying a single family house to live in or a stand alone investment property to rent.

How to buy your first multifamily home. Investors and business oriented individuals interested in real estate have been affected strongly by the changes of today s lending environment but they continue to buy more properties. Buying a multifamily home is a great way to generate extra income but it isn t for everyone. Crowdfunding is a way to raise money by asking a pool of investors for small amounts of capital rather than one big investment. Buying right is the first of three crucial steps to a successful multifamily real estate investment. Instead of raising financing from one lender consider using crowdfunding as a way to buy a multifamily property.

The first challenge is a lack of experience. The fundamental difference between a multi family property and a single family residence is the potential to generate income. Buying a multifamily home to live in and rent out has some compelling benefits. It often takes years to acquire the knowledge and expertise needed to find assess and purchase the property. Multi family homes may be a risky investment but it is also potentially.

Better yet if you choose to invest in multi family homes with this strategy you can qualify for an fha loan. Because the investment property will technically be your primary residence you can end up paying around 3 5 for a down payment. It s one of the best hacks for how to buy a multi family property with no money well practically no money. Once you ve found the right multifamily property to acquire you can sell one or more single family properties while using a tax deferral initiative known as the 1031 exchange. Buying your first multifamily property can be exciting however there are some challenges that you ll need to address.

Consider these realities before signing on the dotted line.