A multifamily home is a building with more than one unit where people can live, each with their own separate kitchens, living rooms, electric bills, and so forth.
Multifamily homes can be rented, be owned, or serve as an investment property where landlords can collect rent from tenants. They can range from duplex, to small 4 apartment buildings, which one is best for you depends on your budget and long term goal.
Buying a multifamily home to rent out (or where you live in one unit and rent out the rest) is a smart financial strategy—today more than ever. Not everyone can afford to own with prices so high, as a result, the need to rent is increasing.
Unlike house flippers, who invest a little time and tolerate a lot of risk, investors in multifamily housing should anticipate owning the property and playing landlord for decades. “If you take care of a rental property for 20 years, it will take care of you for life,” says Daren Blomquist, senior vice president of ATTOM Data Solutions, a property data company based in Irvine, CA.. “The goal is very much long-term.”
The trick is to be prepared for unexpected, repairs, flaky tenants, etc., and do you have the personality to be a landlord.
