Do you want to own a home without the headache of lawn care & snow removal? Are you interested in keeping your home expenses low? Do you want to dip your toe into owning rental property?
If you’re answering yes to any of the above, consider buying a multi family home, like a duplex. Here are the pros & cons of owner occupying a MFH:
You get to own your home while keeping expenses low.
You’ll grow your investment portfolio.
You can write things into the lease like lawn care & snow shoveling. You save yourself the hassle, your tenant gets a break on rent, win win!
You can write off more expenses come tax time.
You’ll share a wall, ceiling or a floor with your tenant.
You’ll be a landlord. Luckily, managing a rental that is attached to your home is far easier than managing property in another location.
If you’re shopping for a duplex, you may find less homes that meet your criteria versus if you were shopping for a single family home. But, YES, beautiful multi unit properties that look, feel & “live” like a single family home exist AND they include privacy, charm, beautiful woodwork & private yard space. They are just fewer & farther between.
Comparing a single family & a multi-family home, financially speaking
Let’s assume your property is $300,000 and you will be putting 20% down. The loan is a 30 year fixed mortgage at 4% interest.
Scenario #1: single family home
Monthly out of pocket expenses for payment, interest & taxes: $1,746
Scenario #2: multi family home (assuming your unit has 3 bedrooms and the rental has 1)
Monthly Payment, Interest, Taxes: $1,746
Monthly rental income: $850
Monthly out of pocket expenses for payment, interest & taxes: $896