Real estate continues to serve as a great source of investment opportunities for long-time investors and even first-time property investors. You can turn to real estate to raise the value of your property and acquire more wealth.
Before you purchase any property, you have to choose the right one. Although common properties today involve single-family homes, you can choose to go in the opposite direction by investing in multifamily residences.
Multiple Families in One Building
Multifamily residences simply indicate properties with one or several buildings that house many housing units. In other words, multifamily residences mean apartment buildings, condominiums, townhouses, duplexes, and other similar residential property. With such properties, you can generate income from several renters, not just from one family if you invested in a single-family home.
Financing a Multifamily Purchase
Now, seasoned investors new to real estate can easily purchase multifamily residences with the income they have generated from other investments. First-time investors, however, whose first investment will be a multifamily residence, lack such wealth. Bonneville Multifamily Capital explains that when a multifamily residence turns out to be your first investment, you can choose FHA multifamily development loans.
Consider Occupying a Unit
Such loans from the FHA will only be available to you, however, if you occupy one of the housing units, making you an owner-occupant. As an owner-occupant, you have the privilege of a 3.5 percent down payment and a low credit threshold. Investors who do not occupy can only access conventional mortgages to purchase multifamily properties.
Becoming an owner-occupant may also be good for you. You can have a go on what it takes to be a landlord. You may like the job and have a career change if you want. Otherwise, even if you prefer not to be a landlord, becoming an owner-occupant provides you real estate properties with a minimum investment.
To find FHA multifamily development loans, you can look for a small financial firm here in Utah that can help you with such special loans.