08/12/2022
House Hack: buy a ✨multi-family✨ as your first home purchase.
✔️Cash flow - When you own a single family unit, you would be solely responsible for monthly expenses associated with that property. In a multi-family, tenants are covering all or some of these, which means savings for the owner. For example, a tenant, who pays their own separate utilities, has a rental agreement for $1,800/month. The owner's monthly mortgage payment of the duplex is $2,500. This means the owner's contribution to the mortgage is only 28%! WOW!
✔️ Rental income counts towards mortgage requirements - Potential rental income, determined by either an existing lease or HUD fair market rent per zip code, is factored into an applicant's yearly income to help determine purchasing capability.
✔️ Gain property management experience - Managing 1-3 rental units at a time will give you practical hands-on experience that will come in handy when you’re ready to grow your portfolio with additional investment properties.
✔️ Tax benefits - Expenses like property tax, insurance, mortgage interest, repairs and improvements, advertising your property for lease and your property management costs can be deducted. Additionally, you can use a 1031 exchange to defer paying taxes on capital gains of the sale of one investment property to purchase another.
A multi-family property is a solid investment for first time buyer. Luckily we live in an area FULL of opportunities to get into real estate investing - Lawrence, Methuen, Haverhill, Lowell, Nashua, and Manchester. We would love to help you find the perfect property! Give us a call and let's get to work! 📱 (978)-689-5908.
