Multi-Family Loans | What is a Multi-Family Home?
A multi-family home is a building that contains multiple residential units, which includes townhouses and apartment buildings. Multi-family properties house several different tenants or owners.
How do Multi-Family Loans Work?
Multi-family loans allow individuals to purchase more than one residential unit, such as apartments and condominiums, under the same mortgage. Multi-family loans may differ from one another according to the term, rate, fees, recourse, leverage, assumability, pre-payment requirements, subordinate financing, lock-out periods, carve-outs and much more.
GuardHill has extensive experience in helping our clients secure multi-family loans for small and large multi-building properties, as well as build multi-state investment property portfolios.
Benefits of Buying a Multi-Family Home
Although buying a multi-family home may be costly up-front, there are many reasons as to why someone would buy a multi-family home. One popular reason is for an investment opportunity.
-Steady Cash Flow
Investing in or buying a multi-family home allows you to rent out the unoccupied units to generate regular monthly rental income.
-Expand your Investment Portfolio
Invest in multiple units at a time, with one mortgage.
-Easier Property Management
Steady rental income may offset the expense of a property manager. The use of a property manager will make maintaining and managing the property much easier for you.
-Proximity to Tenants
If you choose to live in the multi-family property you are buying, you will be neighbors with your tenants. This may help make the property management process more manageable, as you are living in the same building.
-Rising Property Value
Doing minor improvements and renovations to the units may increase the overall property value. Also, increasing demand and rising rents may also increase the value of the property.