Multiple Ways a Multi-Family Works for You
295 Terrace Ave, 2-Family, Western Slope, Jersey City
Making money while you sleep is a solid revenue generating principle. But what if that money was also made where you sleep as well? Multi-family homes are catching on as investment options, especially in large urban areas where both rental prices and resale are competitive.
- Offset your living cost: With a multi-family home, you have the option of owning your new home, while your neighbor helps you finance the endeavor. If you are interested in a condo or single family home, check out this article about why to consider a multi-family instead. Most, if not all, of these points stand true in the Jersey market, like better interest rates, financing options, added cash flow potential and increased equity build. https://www.aspirelosangeles.com/4-reasons-why-it-makes-sense-to-consider-a-multi-family-unit-as-your-first-purchase/
- Simplify your portfolio: As a real estate investor, you likely own several condos or single family homes, which in-turn means separate locations to manage, financial flows and quite frankly, problems to solve. A multi-family simplifies the management while providing similar portfolio and income generation. This in-depth outline from Rocket Mortgage shows steps to simplify your next real estate purchase from down payment, debt-to-income ratio, offer and timing strategies. https://www.rocketmortgage.com/learn/multifamily-homes
- Calculate the possibilities: Doing the math in your market is of utmost importance. Be sure to understand the sale, resale and rental trends in your area and see if the relationship between the three works for your circumstance. Here is a complex calculator from Master Passive Income that can calculate cash flow for multi-family properties from 2-4 units and up. https://www.masterpassiveincome.com/multi-family-cash-property-flow-investment-calculator
- Risk & Reward: While every great investment also comes with its risks, here’s an article we found that outlines both the pros and cons of a multi-family investment. https://bungalow.com/articles/what-to-consider-before-multifamily-investing
