Multi Family Homes for Sale in Fresno CA
Multi-family homes are made up of a single building divided into separate units. Such homes can range from duplexes, typically featuring two dwellings within a single building, to multi-unit complexes, such as condominiums or townhomes.
Owners of multi-family homes often choose to live in one of the units and rent out the others, acting as an on-site manager. This is a convenient way to reduce personal living expenses. However, many investors also choose to live elsewhere and hire a professional property manager to oversee their rental properties.
Multi-family units can be an extremely lucrative real estate purchase. Fortunately, their growth opportunities often far outweigh their initial investment cost.
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Types of multi-family homes
There are several types of multi-family homes and each home is unique in terms of living space and layout. The different types include:
Condos
A condo is a unit owned within a complex that is made up of other individually owned units. Condo owners usually pay a monthly fee to a homeowners association to cover the cost of upkeep and the various services and amenities included.
Semi-detached house
Semi-detached homes often share one wall with another home. These homes are often more affordable than a free-standing single-family home. Semi-detached homes are cheaper to maintain since the owners of the properties often share maintenance expenses on the exterior of the units.
Duplex/Triplex
A duplex refers to two units connected via a floor, ceiling, or a common wall. A triplex is made up of three units. In both cases, each unit usually has its own private entrance and a separate garage and/or yard.
Townhome
Townhomes are much like condos, however, they often consist of more than one level per unit and are much more spacious. Like condos, townhomes require a lot less maintenance than single-family homes since exteriors and amenities are usually managed by a homeowners association.
Who are multi-family homes best for?
Multi-family homes are a great choice for multi-generation families who are interested in owning property together while still enjoying their personal space. Such homes range from two- to four-units and are convenient for extended families looking to live under one roof while enjoying privacy and benefits that often come with a single unit.
Multi-family homes for sale are also great for real estate investors. Those who are looking at investing in real estate to generate future income/wealth could find multi-family homes a smart investment. However, it is important to remember that one must be prepared for the time commitment and responsibilities that come with being a landlord.
An added benefit is that it can enable you to live cost-free in one unit while renting out the other units to generate income. This approach helps cancel out monthly living expenses, quickly boosting your overall return on investment. When the entire mortgage is covered by rental income, not only are you living rent-free, but the property also becomes a lucrative stream of passive income.
Advantages of multi-family homes
Owning a multi-family home allows you to reap numerous benefits. Some advantages of owning a multi-family home are:
Tax benefits
The Internal Revenue Service offers several tax breaks for landlords such as the ability to deduct property taxes, mortgage interest, and repair/maintenance costs related to the property. All expenses can be deducted from your taxes when the home is considered a rental, but not when you are living in it as your primary residence. By reducing income, such write-offs help numerous investors save immensely on their annual income taxes.
Rental income
This is one of the major benefits of owning a multi-family home. As the property generates income from tenants, the income assists in offsetting ownership costs. Also, if the price is right, the extra rental income can often help owners invest in more rental units, ultimately creating a much larger real estate portfolio. Multi-family homes also often appreciate at a much higher rate which is advantageous to homeowners, helping them create a greater return on their investment.
Building a community
Multi-family homes are a great way to build a strong sense of community. When a complex maintains great tenants and everyone bonds well, renters usually stay at the property for multiple years, helping to generate a long-term, stable income stream.
More cash flow
Numerous units in one property result in more cash flow. Each additional family unit increases profit, allowing owners to make more money in comparison to a single-family property.
Tips for buying multi-family homes
Multi-family homes for sale are a great investment since each individual unit can be rented out to generate income. However, it should still be noted that owning rental units can prove to be challenging if you purchase blindly or without previous knowledge or experience. At The Dehlan Group, we are very skilled in all aspects of multi-family homes purchases and can help make sure you do not make costly mistakes. Some key points to consider are:
Choose location wisely
Simply put, location is key. Being able to identify the best location and keeping an eye out for the best deal are key factors in purchasing a multi-family unit. The location of the property should ideally be in a family-friendly community with close proximity to shopping, schools, medical care and entertainment. Easy-access communities are ideal; if tenants have trouble getting to the property from main streets/freeways, they will often go for another, more convenient option. The safety rating of the neighborhood is also very important and should be thoroughly considered.
Overestimate expenses
Investing in a multifamily home often presents unexpected expenses. When planning a purchase or remodeling/repair budget, it is wise to overestimate expenses so that you are prepared for all scenarios. This helps to ensure that you are not left with an expensive or costly surprise.
Inspect the unit thoroughly before purchasing
Before buying a multi-family home, it is important to make sure to perform proper inspections and ensure all maintenance is completed and up to code. Any deferred maintenance can mean additional costs for you since you will be responsible for the extra repairs after you have purchased the property. Being proactive in this area can save you a ton of money and increase your return on investment more quickly.
Work with an experienced real estate agent
When purchasing a multi-unit property, there are some significant differences from single-units that should be considered during the buying process. It is crucial to work with a qualified real estate agent who is familiar with the specifics of multi-family homes. Our agents at The Dehlan Group are happy to guide you through the entire purchasing process. We have the skills and knowledge necessary to guarantee a smooth transaction and to make sure you are making a wise investment.
Multi-family homes are a great investment
Investing in a multi-family home is a perfect way to grow your real estate portfolio while simultaneously bringing in additional income. Depending on the number of units purchased, a multi-family property can either be a passive income side project or a massive undertaking. We recommend only purchasing a property size that you can comfortably manage and afford.
If you are ready to purchase a multi-family home in Fresno, California, we recommend reaching out to our experienced real estate professionals at The Dehlan Group to get started today. You can trust our agents to help you make suitable investment decisions and locate the perfect property to add to your real estate investment portfolio.