Typical home financing involves a buyer finding a home and applying for a mortgage, getting…
This is the year to invest in multi-family property! The housing shortage here in Eugene continues to be a factor in affordable living. Multi-family housing is a realistic way to help curb the shortage while offering Eugene residents quality and affordable housing.
Your investment in multi-family housing is a powerful investment strategy that will provide consistent cash flow every month.
Check out these seven reasons to invest in multi-family property:
Instantly Build Your Portfolio
It takes time to acquire multiple single-family homes. You can purchase a multi-family property and at least double your leasing potential immediately. The guaranteed income from rentals offsets the initial cash investment duplexes and larger units.
The cost of property management for one multi-family unit is much less than trying to manage multiple homes. Hiring out for a property manager is a smart move. The job looks more attractive if all the units are under one roof rather than spread out all over the city.
Higher Monthly Income
When you invest in multi-family property, your monthly income is obviously greater than that earned with a single unit. Additionally, monthly rent will be consistent with all units filled. That allows you to pay mortgages and property insurance, as well as allowing you to re-invest in the property as needed.
Invest In Multi-Family Property and Build Your Community
Eugene continues to grow, as does the whole of Lane County, and housing is still struggling to keep up with demand. Multiple-family housing offers safe and economical housing relief to new residents. It is also an option for those who are caught between home sales and purchases.
Financing May Be Easier With Larger Units
Getting a loan on a multi-family unit may be easier than you think. Lenders use different loan qualification criteria to evaluate investment or commercial properties than residential properties. Interest rates and down payments may be higher, but consideration of monthly income leases may improve your loan chances.
Equity Builds Faster
When you invest in multi-family property, equity grows more quickly. For instance, improving curb appeal, creating cozy living spaces, and adding amenities such as laundry areas, common reception or lounge areas, and security cameras not only improve your property value, they make renters want to live in your unit. Securing long-term leases and keeping vacancies to a minimum make your property worth more to lenders and to the community.
The government likes the idea that you’re providing safe and affordable housing and rewards you with tax incentives. You’re allowed many tax deductions and depreciations and you may qualify for government grants to offset upfront costs. Check with your CPA or tax advisor for more information on tax breaks.
Multi-Family Units Are Smart Deals!
The economy continues its upward climb and that’s a good thing! However, the housing shortage continues in Lane County and across the Pacific Northwest. The ability to invest in multi-family property will potentially change neighborhoods and consequently, change lives. Yours included!