Real estate is an exciting investment. If you are eager to start investing in real estate, you might consider buying a duplex or multiplex property. Buying a duplex will allow property owners to rent out more units while only having to buy one property. Thus, duplex and multiplex homes have the opportunity to be a more profitable investment. Also, with the help of a property management company, it becomes even more hassle-free.
1. Learn the Ropes
Buying a multi-unit home will help you understand how the real estate market works and what the process is for buying rental properties. Learning the ropes of the real estate market will help you recognize good deals when they come up and deals that are trying to take advantage of you. Understanding real estate will make future investing easier. While you are becoming educated with the real estate market, you’ll also become familiar with typical expenses that come from buying a house. These expenses include down payments, mortgage payments, and taxes.
2. Financial Help with Mortgage
Something that scares most real estate investors is the cost of the property, upkeep, and mortgage. However, with a duplex, your renters can help you pay off your mortgage and cover some of the upkeep costs. Having multiple renters will help you create financial momentum to keep up with mortgage costs and still make a profit.
Though a duplex or multiplex property is more expensive upfront, they quickly pay themselves off. Their affordability is because you are essentially buying two properties with one payment. Plus, it’s a bonus for you that you will only have one loan to manage rather than if you bought two single-family homes. Some loans for homeowners can also help to decrease the cost of a property. If you have a home loan from the Federal Housing Administration it has easier credit requirements and low closing costs. So, don’t let the initial cost of a duplex or multiplex make you nervous.
4. Less Worry
With the help of a property management company, you don’t need to worry about some of the downsides that come with owning rental units, like finding tenants, maintenance issues, and landlord duties. You will be able to focus on your life and finding other real estate investments while a property management team takes care of the nitty-gritty rental details. You won’t need to worry about screening your renters, fixing problems, or evicting someone. You can just sit back and relax as your property makes a profit.
Owning a duplex or multiplex allows you to invest in real estate and learn more about the market and process. While owning a duplex or multiplex may seem more expensive at first, they allow you to rent out more than one unit, thus making it more profitable in the long run. Plus, with the help of a property management company, you won’t need to stress over the worrisome details that come from renting property.