Investing in Multi-Family Home

At this tough economic situation, it is important to be smart on where we should invest our hard earned money on.  Many Americans invest their savings on a house they've been dreaming of living in.... but would you consider investing in a multi-family home, that not only provide a roof over your head but also give you a passive income that can last a long time?  The table below shows the average rent for a number of rooms in Anchorage.  The rental information indicated in the table can be yours when you decide to invest in a multi-family property.

	Rent /unit
Studio	$757
1 BR	$954
2 BR	$1,254
3 BR	$1,678

Note: Average Rental in Anchorage. (Source: http://www.myapartmentmap.com/apartments/ak/#data

     

Here are the advantages of investing on a multi-family property:

Interestingly, many multi-family homes are selling for the sameasking prices as single family detached homes with similar features.

It generates income! A multi-family home has several units that can generate income and bring you cash every month. Repair cost per unit is lesser compared to a one single unit that needs repairs and maintenance. No worries if you don’t have a job.

It pays its own expenses – Payment for the property’s mortgage, taxes, utilities, payroll, advertising, landscaping, and so on is not taken from your pocket.  The property can generate income that can pay for its own expenses.

It's easy to get a loan.  Investing in multi-family properties promises an easier loan approval compared to non-income producing-single family home, because lenders qualify and approve the loans based on the property's ability to repay the debt itself.

For non-owner occupants, a 1031 tax-deferred exchange can move the entire profit from the property's sale into another, larger multifamily structure. Using a different strategy, as an owner-occupant, you can sell your property after two years of living on the premises and receive the portion of the profit that's equivalent to your living unit tax-free (in a two-unit home, for example, half of the profit would be tax-exempt). With careful financing and a good track record of on-time mortgage payments, you can expand your investment into two multifamily buildings. You can then continue this pattern atperiodic intervals to constantly increase your net worth.

Now is the best time to invest in a multi-family home because the property values and mortgage interest rates are lower than ever! Furthermore, the rent income is great!

Multi-family homes are going to bring you the greatest amount ofpassive income possible because the tenants you are going to have are going to consistently be paying their rent, and they are going to do so long after the mortgage on the property is paid off. If you choose to flip a property you may be able to enjoy ten or fifteen thousand dollars in accumulated equity; however, that is all you are going to get. By choosing to rent a multi-family home you are going to have the rent checks coming in month after month. These rent checks are going to pay your mortgage for you, and once the building has been paid off, it will more or less be sheer profit for you to do with as you will.

If you want fast return on your investment, you can check out the newly updated 108 Friendly St., Anchorage multi-family home with MLS# 11-417.  It is a FANTASTIC Anchorage Fourplex investment property with great rental history in a very high demand area!  Please call me for more information.