Are you thinking of purchasing a duplex, tri-plex or four-plex home? Residential financing is available for a single family home up to a four-plex. Anything over a four-unit dwelling is considered commercial financing and requires a large down payment and higher interest rates.
There is a golden opportunity for an individual purchasing an income-generating property if they plan to occupy one of the units in the structure. This not only allows you to purchase with a minimum 3.5% down payment, but also offers you the lowest interest rates available. There are pros and cons to managing an investment such as this, but if you have proper cash reserves, resources to handle home repairs, and the stamina to be a landlord, the rewards can be great.
With home prices decreasing as much as 20% or more in some areas, the rental incomes should more than cover the mortgage and gain you a positive cash flow. Give us a call and we can talk through some tips you should take when interviewing potential tenants. Be sure to review city and county ordinances for landlord/tenant laws before taking this big step.
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