Report: Multi-Family Homes as Investment or Residence?
Folks shopping for a place to live have rarely considered multi-family homes in the past, but maybe they should start. Investors long ago realized the value of multi-family properties as a more efficient, more profitable way to cover their mortgage and investment costs.
Multi-Family doesn’t need to imply apartment building. A little nugget of useful information here, anything with four dwelling units or less is considered a residential building. More than four units designates the building as commercial. You might consider a duplex, row-house style or multi-levels. In any case there are ways to protect your privacy if you choose to own and live in a multi-unit home, and the benefit of having your mortgage paid by tenants is self-explanatory.
A recent report on the state of multi-family homes as an investment is not surprisingly, very positive.
According to Yardi® Matrix’s recently released Market Outlook report, the multifamily marketplace will continue to be propelled by growth in property values and rents through 2017. The report, “Can the Good Times Keep Rolling?” projects that multifamily market fundamentals in most metropolitan areas will remain positive, even as rental growth slows.
“2017 is shaping up to be the biggest year for new supply since the financial crisis,” the report states. “Demand for multifamily is poised to remain robust for years.”
The prospect of new federal tax cuts, infrastructure spending and reduced business regulations could stimulate the economy, although potential tariffs and uncertainty surrounding the incoming administration’s policies could temper that growth, according to the report.
One additional consideration. Qualifying to purchase a Multi-family home is not exactly the same as the requirements for a single family residence. Be sure and discuss the differences with your mortgage lender.
For More information, Call or Text: 602-999-0952
Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
For more information, please visit www.yardimatrix.com. Reprinted with permission from RISMedia. ©2017. All rights reserved.
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