For many people, purchasing a multi-family home is an investment opportunity—one that could help bring in extra monthly income.
Some choose to use it to pay off outstanding bills, such as credit card debt and school loans, while others save those funds for a rainy day. As you can see, owning a duplex, a triplex, or another kind of multi-family property can be advantageous if it's handled right.
Once you determine that buying a multi-family home is the right financial move for you, the next item on your to-do list is to establish where you are going to live. Some landlords choose to live in one unit of the home and rent out the remaining unit(s) while others buy the property strictly for its rental income and live somewhere else.
This decision is entirely up to you, as long as you consider the downsides and the upsides of both options.
Living in the Multi-Family Home with Your Tenants
One of the major pros about living in one of the units of your multi-family home is that you won’t be paying for the mortgage and the maintenance of multiple properties. Although being a landlord gives you rental income, the upkeep for just one home, never mind two, can be overwhelming at times. And if a pipe bursts or the roofs starts to leak, you’ll be living close by to handle it.
When it comes to the cons, the one that stands out most in many people’s minds is having their tenants as neighbors. In fact, they are closer than neighbors because you co-exist in the same building. If your tenants are quiet and keep to themselves, you may not mind their proximity. But that isn’t always the case. Tenants come and go, too. Having that flexibility is usually the reason they rent in the first place.
Living Separately from Your Tenants
Instead of living in the same building as your tenants, the pros of living in another residence include putting space between you and them, as well as having an entire place you can call home that you won’t have to share with anyone else unless you want to.
But this kind of living arrangement does have a downside, too. One con to consider is how far you will have to travel if an issue ever arises at your rental unit. If you don’t live that far away, it might not be too problematic. With two homes comes twice the responsibility—double the mortgage payments, double the property taxes. If you’re willing to take this burden on, then renting out an entire multi-family home is the way to go.
Ultimately, only you can decide whether living in the same home where you’re also renting out units is right for you. Be sure to consider all the pros and cons carefully.
Interested in buying a multi-family home, but don’t know where to get a mortgage? Learn about Contour Mortgage’s multi-family home loans.
