Considerations For Successfully Buying Multi-Family Housing With Relatives
Posted on: 16 October 2019
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If you are close to other members of your family and you all share a desire to live near each other, then purchasing a property with multi-family housing is a great option. In fact, pooling your money together is also often a great way to save money on housing for everyone involved. However, before you seriously consider buying a multi-family property for sale, consider each of these things:
Understand the Issues Surrounding Privacy
Sharing a property with relatives does come with some sacrifices around privacy. After all, when your relatives live across town, they will call you before making the drive over to visit. But, when they live next door, it's much easier to just drop by without any notice.
If your doors are always open and you don't mind having company at a moment's notice, then this isn't likely to be a problem. However, if you like your privacy, then it may be something to give some serious thought.
Agree on the Possible Locations and Budget Before You Do Anything Else
Before searching for a property, everyone first needs to sit down and decide on a budget and the possible locations you are willing to live in. If everyone can't agree to both a location and a budget, then the project is dead in the water. Without agreement on these simple things, you will never be able to convey your needs to a real estate agent and find an appropriate property.
Understand the Mortgage Lending Rules for Multi-Family Housing Units Are Different Than for Single-Family Homes
If you and your relatives plan to buy multi-family housing with cash, then the transaction will be a simple one. However, if you need to obtain a mortgage, then things will become a lot more complicated. This is because mortgage lending rules are different for this type of property. A mortgage will require a higher down payment than a single-family home, and everyone involved will need to have adequate income and good credit ratings.
Partner With a Sales Professional With Multi-Family Housing Experience
In conclusion, unless you live in an area where multi-family housing is commonplace, finding an appropriate property can be a serious challenge. While it is entirely possible in nearly every area of the country, it does come with more effort. Work with a real estate agent or realtor in the area who can show you properties for sale that will fit your needs.