(Closed) Buying a multi-family home?

posted 8 years ago in Home
Post # 3
Member
14186 posts
Honey Beekeeper
  • Wedding: June 2009

Multi-family as in….other people may live with you?

Post # 4
Member
4385 posts
Honey bee
  • Wedding: May 2011

i need clarification as well. do you mean a home with an apartment in it that you could rent out?

Post # 6
Member
1701 posts
Bumble bee
  • Wedding: June 2010

I think it’s a great idea, if you’re down. FI and I just bought our first house in May, and were advised by lots of people to go that route, and FI was willing, but I wasn’t. I know it’s smart, but I just wasn’t into it.

Post # 7
Member
4385 posts
Honey bee
  • Wedding: May 2011

i think it’s a good idea then! fabulous really. we’re hoping to do something like this in the future, multi-plexes are a great investment 🙂

Post # 8
Member
1757 posts
Buzzing bee
  • Wedding: September 2010

As long as you can afford the mortgage even if you don’t have renters, I think it’s a fantastic idea. Just realize that there’s more to it than “collect rent at the start of each month”. You might get weird or deadbeat tenants. When stuff breaks, you get to pay to fix it. You’ll have to actually find tenants, and make sure the unit is habitable when they move out.

(Full disclosure: My fiance and I live together, but both of us had purchased houses prior to our relationship, and we now rent them. And both of us want to sell said houses, because this whole landlord thing is somewhat of a pain.)

Post # 9
Member
16 posts
Newbee
  • Wedding: August 2011

That is a really smart idea. If you can do it, go for it. In this market you can get a good deal and in a few years, when its better you can always sell if you want to and probably make a killing!

Post # 10
Member
2030 posts
Buzzing bee
  • Wedding: December 1969

It sounds like your fiance has the skills and the schedule flexibility to take care of any emergency disasters (like plumbing leaks) that could occur in the rental units, so I think it would be a good idea. Make sure you can afford the mortgage even without renters though! Our (awesome and under-priced) apartment was vacant for a year before we rented it.

Post # 11
Member
1813 posts
Buzzing bee

you have to make sure you can afford the mortgage w/o renters for awhile

Also, make sure you have a solid contract & know all the laws, as the courts are generally going to rule in the renters favor if there is a dispute and you didn’t document something or you didn’t know a law.

We are renting out my (old) house, now, and I’m kind of sick of it, since we are both too busy as is.  My hubby isn’t as stressed as me, but I’m hoping we can sell it and get the equity, soon.  At least here, you have to pay extra taxes on rental property, and if you refi, it has to be as an investment loan not to mention when you go to sell it.  Mine is slightly better, bc I lived there long enough that I won’t have to pay income tax on the house profit….better make sure you understand all those rules, though, are that you are in it for the long haul, crazy renters and all.

Post # 12
Member
14186 posts
Honey Beekeeper
  • Wedding: June 2009

Just make sure you can afford it without the rent coming in…I guess I don’t fully understand it..are they units like condos? I’m just not sure i’ve seen any of those around here. Just make sure the rent is a bonus to help pay it off….if you depend on it, you may find you don’t always have it.

Plus, sometimes, for $1,000 to rent a home, you can almost buy one. So the trade off to rent has to be more affordable than buying. Because I know when we looked at apartments, the rent was almost the cost of a mortgage so that really fueled our decision for a house.

Post # 13
Member
2004 posts
Buzzing bee
  • Wedding: November 2008

Not to be discriminatory, but also think about what area the house is in. What types of renters are you likely to encounter? If you live in an area with a transitory population, then you are likely to get renters who are not invested in the long haul, who won’t worry about messing up your house because they’ll be gone in a few months.

Like attracts like. If you could imagine renting to your would-be future neighbors, then I would go ahead. Otherwise, I would pass. Landlordship can be a real pain.

Post # 14
Member
1508 posts
Bumble bee
  • Wedding: October 2009

I’ve seen this on HOuse Hunters and that HGTV show where they look at houses that they would remodel after purchase. We really don’t have multi-family homes around here. Single families and townhouses or condos. we both owned condos but I ended up selling mine since I good make a small profit. I still wonder if that was the right decision.

Post # 15
Member
1757 posts
Buzzing bee
  • Wedding: September 2010

Oh! Don’t forget to think about what you’ll do re: utility bills. If the house isn’t already set up for separate billing, that could prove to be a HUGE pain, and get *really* expensive.

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