Buying a 3 family house and renting it?
11-11-2012, 09:24 PM
#1
Buying a 3 family house and renting it? Good idea? I am thinking about doing this with my parents. Right now i am 23 and live at home but got a decent job and am set to make at least $60k next year. I would split the 3 family with my rents in ownership. My old man is a handyman and could do almost all the work on the house.
11-12-2012, 01:03 AM
#5
I've been considering a 4 family house in my area as well, just not sure I want to deal with all of the potential hassles associated with being a landlord...plus the property taxes around here are insanely high 
(but then again so is the potential rental income from a multi family dwelling).
Good luck with it.
(but then again so is the potential rental income from a multi family dwelling). Good luck with it.
11-12-2012, 06:42 AM
#6
I watched my friends 2 family house for him when he got activated for a year and acted as a temporary landlord (rented both). That experience was enough to let me know I wouldn't be interested in doing that myself.
I also watched another close friend buy a 3 family in worcester, rented 2 floors and about 4 years later barely got out with their shirts. Both these people now live in a single family.
If your starting off its a good stepping stone to save money and build equity (you hope). If you can't afford the single family you want, you might as well have others paying part of your mortgage instead of you paying rent imo.
If you live on the property its a lot easier atleast. Realestate still has opportunities to make money and more people are renting now. Plus sounds like you are keeping it in with the family which is nice.
More of a single family with an attached in-law would be more up my alley.
I also watched another close friend buy a 3 family in worcester, rented 2 floors and about 4 years later barely got out with their shirts. Both these people now live in a single family.
If your starting off its a good stepping stone to save money and build equity (you hope). If you can't afford the single family you want, you might as well have others paying part of your mortgage instead of you paying rent imo.
If you live on the property its a lot easier atleast. Realestate still has opportunities to make money and more people are renting now. Plus sounds like you are keeping it in with the family which is nice.
More of a single family with an attached in-law would be more up my alley.
11-12-2012, 07:07 AM
#7
Yeah id be splitting it 50 50 with my rents. Hopefully getting a good mortage rate with there credit. Id either live at the 3 family or remain at home and rent it all out until i can afford my own single family with a nice big garage
Trending Topics
11-12-2012, 08:21 AM
#8
Depends on how much rent you can get and IF they pay you. $60k sounds decent but it's not that much towards a $300k mortgage, even $120k can be tight when all the other bills and insurance is paid.
First thing to do is add up what all the bills will be. You pretty much want the idea of how much cost each month then go from there. Do not count that the other unit will be rented 100% of the time.
First thing to do is add up what all the bills will be. You pretty much want the idea of how much cost each month then go from there. Do not count that the other unit will be rented 100% of the time.
11-12-2012, 09:14 AM
#9
TECH Resident
iTrader: (1)
Join Date: Mar 2004
Location: NJ
Posts: 986
Likes: 0
Received 0 Likes
on
0 Posts
I currently own a two family. I live in the other side and I've had it for about three years. You have to make sure you're buying in a community that has plenty of other multi families. Scope out what other comps in the area are charging to see if it's worth doing. Do credit checks and check references from former land lords. Definitely get at least a month or month and half in a security deposit. If you live there, it's easier to evict a tenant that's troublesome, meaning the time it takes is significantly less. Make sure your lease agreement is rock solid, no loop holes. Make sure you have enough cash to cover the mortgage if you have a month without a tenant etc. It helps to find a local realtor who knows the area and deals with multi families primarily, this way he or she can show the house while you're at work because when they typically want to see it you'll be unavailable. Separate utilities are a must, you don't want to cover a heating bill when they have the heat cranked to 80 degrees. If my gf didn't want a single family next, I would be buying another two family.
If you live there, it's not considered investment only, and you can put down less, but that may be state specific.
Ls1lt1, i believe there's different laws for 4 family and up (much more responsibilities), you might want to look into that but it was suppose to be the way to go as far as profiting.
If you live there, it's not considered investment only, and you can put down less, but that may be state specific.
Ls1lt1, i believe there's different laws for 4 family and up (much more responsibilities), you might want to look into that but it was suppose to be the way to go as far as profiting.
