Buying a Multiplex in Boulder, Colorado
Purchasing a multifamily property can be very similar to other residential property. For terms of financing, any multi unit with less than four units will qualify for a regular loan provided you own no more than four properties. After that, loans can become for involved. But for now, assuming you own a home and wish to add an investment, a normal loan is achievable. The interest rate is sometimes a tad higher, but generally near the great rates you see advertised today.
Multifamily Advantages
The best advantage is that if a tenant vacancy occurs, the other units are still paying 1/3 to 3/4’s of your rents, so you rarely do you ever have zero rents coming in. Multi unit properties also allow you the flexibility to live in one side while renting the other. This can be a good way to to start out, allowing a buyer to have a home in a very desirable location, while a tenant covers half or more the financial liability.
Extra Responsibilities and Rewards of a Plex
There will be some shared expenses, such as exterior lighting and roofing/siding that you will want to budget for in advance. And, from time to time, you’ll need to be prepared to replace several appliances simultaneously. However, with the extra expenses comes reward. A multifamily property can qualify for a depreciation schedule. The end result – you might find a plex is a very good tax shelter and income generator while also doubling as your residence.
Call me to discuss Buying a Plex in Boulder.