Buying a home is one of the most important decisions you'll ever make. Right now, there are several benefits to choosing to invest in one of the multifamily homes for sale in Fort Wayne, IN. Here are five of the top reasons to buy a multifamily home.
What Is a Multifamily Home?
A multifamily home refers to a single property that contains multiple living spaces. Each space must include a kitchen, bathrooms, utilities, etc. that allow a family to live there comfortably. There are several types of multifamily homes that can be constructed by a trained new home builder. You could, with the help of the best home builders, construct a main home for yourself and attach an apartment or suite. Another option is to build one from a few large old houses that got subdivided into two or more living spaces. A multifamily home can also include apartment buildings and other properties with residences for multiple people.
Renting Out Additional Units
A great reason for new home builders like yourself to buy a multifamily home is that you can rent out the units you and your family don't occupy. The monthly income you can generate by collecting rent from tenants can help you pay off your mortgage and other housing expenses quickly. This will save interest on your home loan. Rental income is also an excellent source of steady income for you and your family to live off of for years and years.
More family members from multiple generations live together under one roof today than ever before. Multigeneration living helps drastically lower overall housing costs, allowing families to keep more of the money they make individually and collectively. Plus, multifamily homes allow your family to live together yet separately. This means that each family within your family will have separate "homes" to live in that is connected to the main "home" on the property. This arrangement gives everyone more privacy and creates a more harmonious atmosphere.
Additional Tax Breaks
When you own a home, you get certain tax breaks, like deductions from mortgage rates and property tax write offs. If you buy a multifamily home, built by an affordable home builder, with rentable units, you might be eligible for additional tax breaks like expense deductions on units you rent out. Deductions can include maintenance or upgrades to said units and depreciation of the property. Overall, these additional tax breaks help you save money in the long run.
Easy to Management
Another reason to buy a multifamily home is how easy they are to manage. Each living space in each unit needs to be managed. Managerial duties include marketing the space, choosing tenants, collecting rent every month, and repairing damaged items in the spaces. This can be too much work for one person. Fortunately, there are residential and HOA management services available online to help you manage each living space on your property.
Better Financing Choices
Multifamily homes, whether bought used or recently constructed by home builders in Fort Wayne, IN, are relatively easy to finance. The income you make from monthly renters can be added to your overall income. You can use this to purchase the property. You will still need to provide a down payment, good credit score, and a low debt-to-income ratio to qualify for the purchase. Still, lenders are more often willing to apply a large portion of your tenant's monthly rent toward buyer income.
If you live on the property as well, you might get a better interest rate and more beneficial lending terms because lenders tend to believe that multifamily homes are maintained better than other kinds of rental residences. Other perks include lower down payments and higher finance percentages.
If you’re looking for a multifamily home or any home, contact Lancia Homes in Fort Wayne, IN. Call us at 260-489-4433.