The Benefits of Buying Multi-Unit Apartments
Wouldn’t it be great if you could get someone else to pay your mortgage each month? It’s not just a nice fantasy; you can make it a reality. Today I want to talk about how you can hand off half your monthly mortgage to someone else.
The beauty of this plan lies in its simplicity: Just buy a multi-unit apartment building. Most residential mortgage programs let you purchase multi-unit apartments without dipping into commercial programs, so there’s no special financing required.
"Economically, this makes a lot of sense."
Let’s look at how this might work. I found a two-unit apartment building for sale in a nice area of Lancaster City for $294,000. I made some assumptions, but with FHA financing, the monthly payment worked out to about $2029.78 per month. If you rent out the other apartment, you could receive $1,100 per month. This means you’re only paying $1,019.78 per month out of pocket.
This is a great situation. Instead of looking at single-family homes and competing against tons of buyers, you can buy a fantastic property and save loads of money in the process. Economically, this makes a lot of sense.
It’s important to remember that you aren’t tied to this property forever. If you just live there for two years, you can save a ton of money on your mortgage while building equity. Then, if you decide to move, you’ll have plenty saved up to buy a great long-term property. You can also hang on to your apartment building so that you can continue to collect rent after you move out. If you go this route, your rent could end up covering your new mortgage completely.
If you are interested in pursuing a multi-unit apartment building or if you have any other questions, please call or email me. I’d love to help in any way I can.