Pros and Cons of Indiana Multi-Family Investment Properties

Aug 12, 2019

Do you want to learn more about multi-family investment properties in Indiana? Check out our post for some of the pros and cons!

Multi-family investment properties can help to grow your real estate portfolio. In fact, many people use owner-occupied multi-family properties to begin their investing careers. By living in one of the units of the building yourself, you will be able to purchase the property (up to 4 units) with an FHA loan and a low down payment. The rent you are charging the other tenants in the building should pay your mortgage as well as many other costs of ownership. In essence, you will be able to live for free while building equity and saving money. Win. Win. Win.

Below, we discuss the pros and cons of owning multi-family properties. Not just owner-occupied ones, but properties that are completely tenant occupied as well. Learn more about what’s involved than give us a call to find the best deals on multi-family properties in Indiana!

Pros

Lower Vacancy Rates

When you have your eggs in more than one basket, a vacancy won’t be as big of a deal. Look at it like this. You could have one single-family home in which you collect $2,000 per month in rent. If your tenant moves out, you are collecting nothing. Or you could have a duplex, with each unit renting out for $1,000 each month. If a tenant moves out, you will still be making $1,000, which is much better than $0.

Low Funding Costs

FHA loans are the low down payment alternative to a conventional mortgage. You can use an FHA loan to buy a house or you can use it to buy an investment property with up to four units. Using this strategy will require you to use one of the units as your primary residence, but only for 12 months. After that, you can rent out the entire building, quickly building equity and paying off your mortgage.

Lower Maintenance Costs

When making major repairs or renovations, it can be more cost-effective to repair things once as opposed to two or three times. Let’s say the roof needs to be replaced on your triplex. You do it once and you won’t have to worry about it again for quite a few years. On the other hand, if you have 3 houses, you will be looking at roof repairs much more often. This can not only cost more but take up a good amount of your time too when you consider all of the repairs a property often needs.

Cons

More Work

When you have a multi-family property, you will be dealing with more than just one tenant. You will get repair calls more often and will possibly have to mediate disagreements between neighbors.

Turnover

People don’t always see a multi-family property as somewhere they plan on being for a long time. It is typically more transitional, which mean more turnover for you. You will have to screen more tenants, professionally clean more often, and can potentially lose out on more rental income than you would with a stable tenant in a single-family property.

Less Privacy

If you opt to use an FHA loan to purchase an owner-occupied investment property you will have to live on site for a year. This gives your tenants the ability to contact you any time day or night. Hopefully, you have tenants that will respect your space and your privacy. When you have the right people in place, owning a multi-family investment property can be your key to building wealth through real estate.

Let us help you find the best multi-family investment properties in Indiana! Get in touch with us today for more information! (574) 601-3340

By Matt Vukovich 21 Mar, 2024
The decision to sell a home quickly, often driven by the need for immediate cash or the resolution of urgent financial matters, brings with it a spectrum of financial implications. This segment explores the immediate financial impacts of such a sale, including the potential for quick liquidity and the accompanying risks and expenses that sellers should consider.
By Matt Vukovich 23 Feb, 2024
In Mishawaka , Indiana, a distinguished group of probate lawyers stands out for their expertise and commitment to excellence. Navigating the complexities of probate law, these professionals offer invaluable guidance and support in managing estate settlements and legal challenges following the loss of a loved one. Renowned for their legal acumen and empathetic client relations, they represent the pinnacle of probate law practice in Mishawaka , ensuring a seamless and compassionate legal journey for their clients. Among these legal professionals, five stand out for their exceptional service and expertise. Let's dive deeper and learn more about them!
By Matt Vukovich 20 Feb, 2024
Indiana , often hailed as the "Crossroads of America," stands as a testament to the diverse fabric of American life, boasting a blend of urban energy, rural tranquility, and economic vitality. Within this dynamic milieu, the real estate landscape of Indiana is experiencing notable shifts , with homeowners across the state opting to sell their properties for various reasons. In this exploration, we delve into the top reasons why Indiana homeowners choose to sell their properties. From pursuing new opportunities to adjusting living space needs and seizing favorable market conditions, each decision to sell unveils a unique narrative shaped by personal aspirations, financial considerations, and the ever-evolving real estate market dynamics.
By Matt Vukovich 05 Feb, 2024
Homeowners must grasp the subtleties of various sales strategies since purchasing or selling a property is a big financial decision. Selling a property can be done in two ways: either for cash to a buyer directly or through an agency, or through a traditional real estate agent-led process that uses the Multiple Listing System (MLS) and a well-planned marketing campaign. Time is frequently of the essence when it comes to selling your house. Whether you need to liquidate your belongings fast or are moving for a new career, a quick sale can ease your stress and give you the confidence to move on. So, is it better to take a standard sales approach or go for a cash offer?
By Matt Vukovich 31 Jan, 2024
When it comes to real estate, one of homeowners' primary goals is to maximize their property's value. Whether `you're looking to sell your home in the near future or simply want to increase the equity in your current residence, there are several small fixes and improvements that can make a significant difference. These small changes can add value to your property without breaking the bank. In this article, we will explore some of the most effective ways to enhance your property's value with small, manageable improvements.
By Matt Vukovich 27 Jan, 2024
When it comes to selling your home for cash, the process is different from a traditional sale , but it can also be much easier. If you're considering a cash offer on your home, it's important to understand the steps involved. From signing the contract to the timeline for closing, there are several key aspects to be aware of. In this blog, we will demystify the home valuation process for cash sales, breaking down everything you need to know to be prepared for an all-cash offer on your home. Whether you're in a selling time crunch or simply looking for a hassle-free sale, understanding the cash sales process is the first step towards a successful transaction.
By Matt Vukovich 26 Jan, 2024
In the realm of real estate, the decision of how to sell your property can have far-reaching implications beyond the immediate transaction. Opting for a local cash buyer is a choice that not only streamlines the selling process for homeowners but also brings many benefits to their communities. This approach is increasingly gaining popularity for its efficiency and the positive impact it can have on local economies and neighborhoods. In this brief exploration, we delve into how choosing a local cash buyer can be advantageous both for individual sellers and the broader community, highlighting the synergistic benefits that this method of property selling offers.
Selling Inherited Property: Traditional Realtors vs. Cash Buyers
By Matt Vukovich 08 Dec, 2023
You've found yourself in the unique and often complex situation of having an inherited property on your hands. Whether it's a family home or a piece of land passed down through generations, one thing's for sure: at some point, you'll have to decide what to do with it. In this blog, we're unraveling the age-old dilemma many face when selling inherited property: Should you go the traditional route with real estate agents or opt for a quick deal with cash buyers? It's a showdown like no other, and it's all about finding the path that suits your needs, timeline, and financial goals.
By Matt Vukovich 11 Nov, 2023
Nestled in the heart of Indiana, Mishawaka boasts a real estate landscape as unique and vibrant as its history. While the principles of selling a house may seem universal, every locale offers its distinct challenges and opportunities. In Mishawaka, sellers are presented with a blend of traditional charm, local amenities, and shifting market dynamic s. This guide aims to illuminate the path for homeowners navigating the nuances of the Mishawaka real estate market, ensuring a sale that aligns with their expectations and the city's distinctive character. Whether you're a first-time seller or a seasoned real estate enthusiast, understanding the Mishawaka-specific context is your first step to a successful home sale journey.
By Matt Vukovich 06 Nov, 2023
When moving into an area with an HOA, the benefits sometimes outweigh the negatives, but after some time, they catch up, for example, the countless HOA fees that may sometimes not even make sense to you. Most of the time, when an HOA becomes an unpleasant presence in your life, the simplest thing to do may be to sell your house and leave .  But is this the only solution? What if there are ways to get out of paying HOA dues while still maintaining your home? This article aims not to provide legal advice but to guide you on how you can go about dealing with the cumbersome HOA fees.
Show More
Share by: