Choosing to buy a multi-family home is a big decision, and with that commitment comes a lot of stress, especially in the beginning. Even if you’ve bought and sold a home before, shopping for a duplex is different from buying a single-family home because you have other factors to consider.
For instance, if you’re thinking about buying a multi-family home as your primary residence, you really have to contemplate the idea of living in such close proximity with your tenants. But if you’re planning to rent out the entire property, you’ll have to scope out the area and consider the distance between your tenants' place and your home as well because they'll be calling you when problems arise.
So, saying that you’ll be dealing with some home-buying stress is an understatement.
Be Sure of Your Choice
First off, you need to explore the pros and cons of buying a multi-family home to decide if this is really the right decision for you. Being responsible for one property can take up a lot of your time—being responsible for two is a whole other ball game.
Not only do you have to interview every potential tenant—as well as evict any tenant who is not abiding by the rules—but you are also accountable for all repairs, including broken ovens, damaged flooring and leaky roofs. On the other hand, those who choose to buy a multi-family home can make money from owning the property.
Being certain about your decision can relieve some of the home-buying stress because there won’t be a little voice in the back of your mind questioning every step you make towards becoming a landlord. Once you stop questioning yourself, you can focus on choosing the right property.
Turn to the Experts
Although some people decide to take on the real estate market alone when looking for a house, using a realtor is extremely beneficial because you won’t be tempted to second-guess every decision you make in terms of the neighborhood location, the potential profit, the estimated return on investment and more. A realtor can provide you information on desirable properties that fit your budget, as well as average rental costs in each area.
The same goes for whom you work with to get a mortgage loan. There are certain qualities that a mortgage loan originator should possess, like taking the time to explain every financial option you have. This takes a lot of pressure off you because you aren’t left trying to figure out the different mortgage loans. Instead, you can simply get in touch with your mortgage loan originator and ask them to explain it to you.
Think Ahead
Having a plan is always smart when buying any type of property. For example, if you want to own a multi-family home by the beginning of next year, you’ll need to contact a mortgage lender first, get pre-approved for a mortgage—which can take time if you don’t qualify right away—and determine a budget, among other things.
But thinking ahead also involves being prepared for the unexpected. It may not be comforting to know that there’s always a chance your plans could get delayed, but at least you won't be caught by complete surprise if the closing date suddenly gets pushed back. If you're anticipating what can go wrong, you won't feel as stressed out if something unforeseen does come up during the home-buying process because you're ready to handle it.
Interested in buying a duplex? Contour Mortgage provides multi-family loans for home buyers!
