If you want to make some money off a real estate investment while also gaining a place for yourself to live as well, you should look into purchasing a multi-family home. Here are a few things you will need in order to purchase a multi-family home.
#1 Get Your Finances In Order
The first thing you need to do is look at your financial information. If you intend to live in one part of the home and rent out the other part of the home, you may qualify for a commercial home loan instead of a residential home loan.
In order to qualify for a commercial home loan, you need to make sure that you have saved enough money to pay the down payment off in cash. Down payment rates can vary, but you should be prepared to have at least enough cash on hand to put down 20% on your loan; you may not need to put down that much cash, but you don't want to lose out on a great home because you didn't save enough to start with.
You also need to think carefully about how much you can afford to pay each month on a mortgage payment. This will dictate the size of the loan you take out and thus the down payment that you need to put down.
Getting your loan and finances in order first will help you make a smart financial decision.
#2 Determine Where You Want To Buy
Since you will be both living in and renting out your multi-family home, you need to really think about where you want to live and what amenities you want near your home. You also need to think about what type of renter will be attracted to that area and what type of renter that you want to work with. For example, if you purchase a home in a great school district, you'll most likely be dealing with family renter. Or if you purchase a home near the downtown nightlife, you are more likely to get younger renters.
Think carefully about what you need and who you want to rent to before you determine where you want to buy.
#3 Find A Real Estate Agent
Once you have secured and figured out your financing and you know the area you want to purchase a multi-family home in, it's time to hire a real estate agent from a company like Ebh Properties Inc. You can work with a residential agent who knows the area and can tell you who buys and lives in the areas you are interested in.
However, since this home is also an investment property for you, you may want to find an agent who also has some experience with or knowledge about commercial real estate, specifically residential and multi-home rental units. Try to find an agent who is knowledgeable about the type of real estate that you want to purchase.
If you want to purchase a multi-family home as both an investment property and a place to call home, get your finances in order, determine where you want to live and find the right agent who can help you get the property that fits all of your needs.