When looking for a foreclosed property to purchase, some buyers not only look for a structure that will serve as their residence but will also provide a steady source of income. For most residential property investors, purchasing foreclosed multi family homes is one way of satisfying both criteria.
What Are Multi-Family Dwellings?
A multifamily house is a residential structure comprised of two to four living units housed in a single freestanding building. Each unit will have a bedroom, bathroom and kitchen and other features that are commonly found in an ordinary single family dwelling. Each unit provides privacy to its residents the same way that a single family house does. The only difference is that the unit is part of a single structure divided into separate residential quarters. In some cases, one or two of the units will be located in one floor while the remaining units will be on succeeding floors.
Why Multifamily Structures Are Considered Good Investments
The best thing about multi family homes is that owners are provided with a place to call home, while at the same time, they will have a chance to earn a steady income by renting the rest of the units to other families or individuals. These homes can also build a lot of equity over time, providing owners with a solid investment that they can use in the future.
Homeowners who have the skills to renovate dwellings can work on the repairs if they are required. This could further increase the value of the property and can make a difference in the rental rates that owners will require from their tenants.
However, owners of multifamily residences should be aware that there is always a possibility that one or two of the units can become vacant. This will inevitably affect the cash flow of owners and they should always be ready with an alternative income source to cope with the situation.
Purchasing foreclosed multi family homes can be a good investment move. Aside from acquiring a property at an affordable price, buyers will acquire a residence and a source of income at the same time.