Buying A Home? 5 Reasons To Consider Buying Multifamily Housing

Are you in the market for a new home? While most buyers assume that they should buy a single-family home, could a multifamily home be right for you instead? Before you make up your mind and sign on the dotted line, here are a few reasons a multifamily home—whether it be a duplex, triplex, or fourplex—is worth considering.  

1. It Keeps Family Close. A multifamily structure provides separate independent living for more than one household. This is a great way for young adults to transition from living at home to living on their own. Many families with college-age kids save money in this way versus paying for dorms or on-campus apartments. Or you might make room for older family members to live safely on their own but within reach. 

2. It's Potential Income. If a family member doesn't need to use the other half of the property, you can rent it out for additional income. These can be either short-term, vacation, or long-term rentals. Many multifamily property owners have kids or relatives living in the units for a while, but then eventually rent to strangers for income when the arrangement is no longer needed. 

3. It's One Structure. Even though multifamily housing serves as rental units, they have an advantage over traditional rental housing: they aren't separate structures. The multifamily building has one roof, one set of wiring and plumbing, one property tax bill, and one septic system. This saves money for the landlord while bringing in extra income to pay for the upkeep. 

4. It's Flexible. While a duplex or triplex is designed to serve as multiple individual units, it doesn't have to stay that way. Once your kids launch their adult lives, for example, you can renovate the entire space to turn it into one home. Or rethink the interior plan to provide a mother-in-law suite that's private but not completely self-contained. 

5. It's a Retirement Plan. Homes are both a current expense and an appreciating asset. This means your home could be part of your retirement plan. Paying off a home early, especially by putting the rental income toward your mortgage, means fewer expenses after retiring. Or you might continue to rent out the additional units to fund your own retirement. And there's no need to downsize and move later. 

Where to Learn More

Could a multifamily unit with two, three, four, or more units be a good investment for your family? Start by learning more about these homes for sale in your area today.