Multi Family Mortgage
There is no other effective wealth-building strategy,, than real estate investing. For those of you who are new to investing in real estate, or just looking to expand your portfolio, a multi-family property is a solid investment with great potential in obtaining wealth. If you have been regularly adding to your savings, you might have enough to consider buying an apartment building to earn a better return than the interest rate at your bank.
What is a Multi Family Mortgage?
Multi family mortgage is a type of home loan that can be used for the purchase or refinance of smaller 2-4 unit multi-family properties, and large apartment buildings with numerous units. Multi-family home loans can be a great tool for both first time real estate investors and seasoned professionals.
Multi-Family Home Loan Benefits
Greater Cash Flow
With more tenants paying rent, cash flow on a multi-family residential unit is greater than a single-family investment. The more units have, the less risk you carry as other tenants contribute to covering operating costs.
Easier to Finance
The cost of purchasing a multi-family property is higher. But because a multi-family property can generate a stronger cash flow month to month, lenders are sometimes more likely to favor financing these types of properties.
With all of your investment properties being easily accessible to you in one location, managing a multi-family property will most likely be easier than managing several single family units which can be spread out.
The demand to rent is not going away anytime soon. People will always need a place to live, and with rising home prices, many people will continue to rent since they cannot afford to buy.
I’m Ready to Apply for a Multi-Family Home Loan
When it comes to generating long-term cash flow through passive income, buying a multi-family property might be the right investment for you. Whether you’re a seasoned real estate investor looking to take your game to the next level or a newbie wishing to make a plan for long-term, sustainable cash flow, Homestead Mortgage can help. To learn about all the different multi-family mortgage options that are available to you, contact the Homestead Mortgage home loan expert Tim Barr today!