If you are looking for a real estate investment that has plenty of potential, two-family homes are a great direction to turn to. These homes come in the form of duplexes or homes with upper and lower levels suitable for multiple families to comfortably live within. When looking for a great real estate investment, you should give strong consideration toward buying a two-family home for the following reasons.
Two Family Homes Are Less Expensive
Lowering your startup costs and maximizing your profits is always the name of the game when it comes to real estate investments. In the case of two-family homes, you will receive a big return on your investment, because these multi-family homes have a lower purchase price. With this in mind, you will be open to competitive mortgages and interest rates, while also paying lower taxes on the property overall. Taking advantage of a two-family home listing on the market allows you to decrease the loan amount that you must hunt for, which also allows you to purchase the home with a much lower down payment. Without question, a lower price is one of the best advantages you'll enjoy in this regard.
Two-Family Homes Have Greater Rental Potential
Since you are allowing two families or two tenants to inhabit your property, you can count on more money coming in every month. This provides more bang for your buck than a single-family home, while allowing you to use the additional money to pay down the mortgage more quickly, or to use it for your other investments. Having two families or occupants can allow you to get double the monthly mortgage payment or more, making the property a sound investment overall.
Two-Family Homes Allow You to Minimize the Risk
Having a tenant default on their rent is enough to make you sweat, especially if you don't have the means to cover the mortgage on your own. Having more than one tenant in the unit gives you the chance to minimize on that risk, since you are collecting rent from more than one person. So if one person or family defaults on rent, you are still covered if the other person pays their rent. Conversely, if you are renting out a single family unit, you are out of luck if the tenant is not able to pay.
To see your options, look for homes for sale in or near your locality.
Searching for a home a hundred miles away from where I was previously living was hard. There was no way for us to take a trip up to see every single house that we found online to see first-hand the condition that it was in and how big it truly was. I had to find a real estate agent that I could trust to help us find several houses to make a trip up to see in a single day. I created this blog after going through the buying process and making the move. It is my hope that if you are buying a new home far from your current one, that the tips here will help to make it an easy transaction for you.